1.5-bn-yuan industrial FOF launched in Dongguan for growing Greater Bay Area’s emerging industriesDecember 17, 2018
DONGGUAN, China, Dec. 17, 2018 /Xinhua-AsiaNet/– On the sidelines of the World Dongguan Entrepreneurs Convention 2018, the World Dongguan Entrepreneurs Capital Summit was held on December 14, attracting many experts, scholars, institutional investors and businessmen from across the world. At this event, they placed their focus on the industrial investment and financing and exchanged views on co-opetition opportunities that are brought by the constructing Guangdong-Hong Kong-Macao Greater Bay Area. The summit witnessed the launching of a 1.5-billion-yuan-worth FOF (fund of funds) for industrial merger and acquisition, in which the private sector of Dongguan takes a larger stake. Its investment will go to such fields as massive consumption, fin-tech and smart manufacturing.
The building of the Greater Bay Area is gaining steam, so is the progress of the Guangzhou-Shenzhen Science and Technology Innovation Corridor. Given that, the city has increasingly emerged as a core that converges the half-hour economic circles of the east bank of the Pearl River and the west bank. Global investors are optimistic about the development potential of the city, particularly due to the synergy of its prime geographical location and solid industrial base.
Dongguan used to take a quantity-oriented development path, covering a large land area and consuming huge cheap labor force, said Yin Hongwei, president of Dongguan Investment Group Co., Ltd. Today, however, the city is upgrading and bolstering development in a more quality-oriented way through continuous innovation and cutting-edge technologies.
Experts are conscious that when enterprises are to upgrade themselves, a relaxing financial climate, supporting industries and external drivers are of tremendous importance. Given the fact, more than 150 Dongguan-based firms joined forces to found Dongguan Investment Group in August last year, with an initial registered capital of 10 billion yuan (USD 1.45 billion). The move shows that the affluent private sector is aiming to expand its presence in the emerging industries.
During a media interview, Dongguan’s mayor Xiao Yafei encouraged Dongguan Investment Group to serve as a functional platform for private capital when it makes an inclusive plan for investing in the city’s industries and pools capital from Dongguan entrepreneurs.
Likewise, businesses in Dongguan have spotted opportunities generated by the Greater Bay Area. A testimony to that is a fund jointly launched in 2016 by the Dongguan government, World Dongguan Entrepreneurs Federation and the Dongguan Innovation Center of Tsinghua University. Strategically, the fund will be channeled into the emerging industries, including intelligent equipment, electronic information, environment protection and new energy and new materials.
At the signing ceremony of the Convention, Changping Guanrui United Network Smart Valley project, which centers on the Internet of Things (IoT), cutting-edge communication technology, intelligent terminal, new energy, high-end equipment and other strategic emerging industries, got a lot of attention. By introducing projects concerning the IoT, the Internet of Intelligences and car networking, the Smart Valley is set to become an integrated network with frontier technological innovation and comprehensive service center of Dongguan and even the Greater Bay Area.
“We should cultivate our industries from financial standpoints while delivering financial services in accordance to the holistic industrial pattern,” said Yin. Striking a balance between industry and finance, Dongguan Investment Group has already given priority to increasing business in financial services and investment in industries, major projects and equity. On top of offering financial support, the group will help inject impetus into enterprises’ endeavor to upgrade themselves by taking their management, sales channels broadening and industrial chain support to new heights for win-win cooperation.
Source: The World Dongguan Entrepreneurs Federation