China Chengtong Leads the Way in Venture Capital with Three Central Enterprises and Total Investment of Hundreds of Billions
The Chengtong Science and Technology Innovation Fund invests in emerging industries with an initial investment of 10 billion yuan.
The Chengtong Science and Technology Innovation Investment Fund plans to invest a total of 30 billion yuan. The initial capital scale is not less than 10 billion yuan, mainly investing in strategic emerging industries such as new materials and new-generation information technology. Just half a month after the release of incentive policies, another central enterprise’s hundred-billion venture capital fund was quickly established.
Recently, the cooperation signing ceremony of the Chengtong Science and Technology Innovation Investment Fund was held in Beijing. At the ceremony site, China Chengtong, Sinopec, China National Aviation Fuel Group Corporation, and the Haidian District Government of Beijing jointly signed a cooperation framework agreement. The fund plans to invest a total of 30 billion yuan, and the initial capital scale is not less than 10 billion yuan.
From the perspective of investment direction, the Chengtong Science and Technology Innovation Investment Fund will focus on investing in industry-leading technology enterprises, specialized, refined, peculiar, and new enterprises, scientific and technological achievement transformation projects, and technology enterprises in the upstream and downstream of the central enterprise industrial chain, especially in strategic emerging industries such as new materials, new-generation information technology, advanced manufacturing, and green and low-carbon.
According to the announcement article of China Chengtong, the fund actively helps stabilize growth. With practical investment actions oriented towards forward-looking and strategic emerging industries, it also adheres to being long-term capital and patient capital, investing early, small, and long-term, and “being a friend of time.” It accelerates the formation of a long-cycle empowerment support model for key industries and key link science and technology innovation enterprises.
At the beginning of December, the State-owned Assets Supervision and Administration Commission of the State Council and the National Development and Reform Commission jointly introduced policy measures to promote the high-quality development of central enterprise venture capital funds and support central enterprises to initiate the establishment of venture capital funds, focusing on early-stage, small-scale, long-term, and hard technology investments. In particular, it supports central enterprise venture capital funds to strengthen cooperation with institutions such as colleges and universities, scientific research institutes, technology incubators, and industrial parks to build a market-oriented science and technology innovation incubation and industrial investment and financing mechanism.
This incentive policy not only continues and affirms the effectiveness of central enterprises’ layout in venture capital in previous years but also proposes fault-tolerant mechanisms such as “reasonably determining risk tolerance according to investment strategies,” “establishing a mechanism for exemption from accountability for due diligence and compliance,” and “appropriately simplifying asset evaluation and due diligence procedures.”
Under policy encouragement, the Guoxin Venture Capital Fund jointly initiated by China Reform Holdings Corporation and the Hangzhou Municipal Government also completed signing earlier this month. The first phase of the fund has a scale of 10 billion yuan and a duration of 15 years. It takes technology innovation enterprises in the seed stage, start-up stage, and growth stage with hard technology strength as the main investment targets and provides long-term support to accompany the growth and strengthening of technology innovation enterprises.
It is worth mentioning that the main initiators of the newly established Chengtong Science and Technology Innovation Investment Fund are also central enterprises and local governments.
According to the data, China Chengtong, the investor of the aforementioned Chengtong Science and Technology Innovation Investment Fund, was established in 1992. As a central enterprise state-owned capital operation company, it has built a “4 + 1” platform layout of fund investment, equity management, asset management, financial services, and the cultivation and incubation of strategic emerging industries. Among them, the scale of the fund investment sector exceeds 680 billion yuan.
The reporter of Venture Capital Daily noticed that in addition to the newly established Chengtong Science and Technology Innovation Investment, China Chengtong also contributed to the three mother funds for the trillion-scale leading industries released in Shanghai this year.
According to the data of CVSource – Zhizhong, since 2024, China Chengtong has also invested in three funds, namely Hubei Green and Low-Carbon Development Phase I Equity Investment Fund Partnership (Limited Partnership), State-Owned Enterprise Land Asset Activation (Beijing) Equity Investment Fund (Limited Partnership), and the Third Phase of the National Integrated Circuit Industry Investment Fund Co., Ltd.
It can be seen that China Chengtong is one of the central enterprises that invests in a relatively large number of funds. Other central enterprises that are also active in investing in private equity investment funds include SDIC, SPIC, Sinopharm Group, and the aforementioned China Reform Holdings Corporation.
In addition, Chengtong Fund, under China Chengtong, as a private equity investment fund management institution with “market
