The first S fund alliance in the country is established!The potential market size is nearly 900 billion yuan, and the eve of the outbreak

On September 24th, at the Industrial Service Forum of the Shanghai Asset Management Association, the Shanghai S Fund Alliance, which was jointly established by the Shanghai Equity Custody Trading Center and Shanghai Science and Technology Innovation Fund, was officially unveiled. This is the first S fund alliance in the country. From the National Mother Fund, the well -known market -oriented parent funds at home and abroad, local guidance funds, financial institutions such as insurance, securities firms, banks, local state -owned enterprises and industrial groups, and other 80 market -based front -line institutions formed the first members of the alliance.

In the private equity market, funds focusing on the share transfer business of second -hand funds are called "S funds"; markets that include "second -hand" businesses such as S fund are called private equity secondary markets.

"Compared with the mature markets overseas, the secondary market in China has just started. On the eve of the outbreak, the demands of the buyers and sellers are very urgent." Yang Bin, president of the Shanghai Science and Technology Innovation Center Equity Investment Fund Management Co., Ltd., said in the forum speech that the domestic private equity industry Facing the issue of exit "Dagmed Lake". In 2021, the potential scale of China's S fund market was 600 billion yuan to 900 billion yuan, but the actual transaction volume was less than 70 billion yuan.

Over 80 institutions appear on the first batch of membership list

The first members of the Shanghai S Fund Alliance include national -level parent funds, well -known market -oriented parent funds at home and abroad, local guidance funds, insurance, securities companies, banks and other financial institutions, local state -owned enterprises and industrial groups over 80 first -line institutions.

Among them, there are some well -known institutions. Among the national parent funds, the Silk Road Fund, Chengtong Mixed Reform and the National New Fund are listed; among the market -oriented parent funds, Yuanhe Chenkun, Qingke Maternal Fund, Light Control Maternal Fund, and Valen are listed; In the middle, Xingjian and Kohler are listed; in terms of local state -owned assets and local guidance funds, Shanghai International Group, Shanghai Science and Technology Investment Group, Shenzhen Investment Investment and Beijing Science and Technology Fund are listed; Capital, Haitong Kaiyuan, etc. are listed.

"The number and scale of Shanghai Private Equity Fund ranked among the top nationwide, playing an important role in the asset management ecosystem." The transfer pilot is officially launched, further enriching the exit channels of private equity funds, and the cycle of funds and industrial cycles is more smooth.

After the official unveiling, the Shanghai S Fund Alliance will cultivate more professional and qualified market participants through interbank exchanges; give full play to the function of think tanks, and provide professional suggestions in policies, laws, and practice around the S fund market; To strengthen docking with regulatory agencies, government departments, marketing agencies, etc.; in addition, it will also help Shanghai private equity shares in the second -hand share market construction, and build a communication bond and cooperation bridge for the main body of well -known S fund share trading and intermediary service agencies.

14 measures to support the pilot of the S Fund Exchange

In recent years, with the rapid improvement of the existing assets of the secondary market in private equity, the S fund has ushered in a period of accelerated development, and related support policies follow closely. On September 21, 6 units including Shanghai Local Financial Supervision Bureau jointly issued the "Several Opinions on Supporting the Pilot Work of the Shanghai Equity Custody Trading Center to carry out the pilot work of private equity and entrepreneurial investment shares."

The "Several Opinions" involves 14 specific measures, which mainly include four aspects, which are to clarify the requirements of state -owned assets in transaction, change the registration path for changing shares, strive for legislative support business innovation, and encourage more market entities to participate. Among them, the Shanghai State -owned Assets Supervision and Administration Commission supports some state -owned asset -owned companies to set up a new S fund or increase the S strategy; the Shanghai Municipal Finance Bureau supports government investment funds through the share transfer platform to achieve orderly withdrawal; the Shanghai Local Financial Supervision Bureau supports QFLP pilot agencies to actively explore and cross The transfer business, support industry associations, professional associations and Shanghai Stock Exchange Center to strengthen cooperation.

In November 2021, with the support of the China Securities Regulatory Commission, the transfer of private equity and entrepreneurial investment share of Shanghai Stock Exchange Center began to operate. At present, a total of 15 orders and amounts exceed 1.2 billion yuan.

Private equity secondary market is on the eve of the outbreak

According to the "China Private Equity Equity Secondary Market White Paper 2022" released by the service company of alternative asset investment, in 2021, a total of 353 transactions in China's private equity secondary market have been traded, covering 337 funds, and the cumulative transaction amount that can be known reached 66.807 billion. Yuan, compared with the transaction amount of 26.445 billion yuan in 2020, increased by 153%.

"Compared with the mature markets overseas, the secondary market in China has just started. On the eve of the outbreak, the demands of the buyers and sellers are very urgent." Yang Bin, president of the Shanghai Science and Technology Innovation Center Equity Investment Fund Management Co., Ltd., said in the forum speech that the domestic private equity industry Facing the problem of exit "Dagmed Lake". From 2015-2018, the subscribed capital contribution of China LP was sprayed. The duration of these funds is mostly five to seven years, and the exit period has now entered.

According to Yang Bin, it is estimated that in 2021, the potential size of China's S fund market is 600 billion yuan to 900 billion yuan, but the actual transaction volume is less than 70 billion yuan. At present, the current pain points and difficulties of the domestic private equity market secondary market include incorrect information caused by private equity properties, relatively complicated transaction pricing, high GP network coverage requirements, and professional investment judgment capabilities. The establishment of the Shanghai Asset Management Association will promote the liquidity of the private equity market.

"At present, the seller's asset package is diverse, and the buyer is relatively homogeneous, which makes the market not active enough." Wang Yunfan, a guest of the morning whistle group of private equity market agency, also said that about 20%of the private equity fund project can pass through 20%When listing and mergers and acquisitions, 80%need to seek other exit methods, and will enter the secondary market.However, at present, there are only 100 buyers who use the S fund as a target asset. It is now a buyer's market."White Paper" shows that in 2021, financial institutions have reached 81 transactions as buyers, and the transaction amount reached 16.147 billion yuan. The number of transactions was 16 times that of 2020, and the transaction amount was 5 times that of 2020.The increase in transaction volume of financial institutions is mainly related to two factors: on the one hand, many policies have encouraged financial institutions to enter the private equity investment market in recent years; on the other hand, the average performance of the S fund in net return and net IRR is higher than that of general private equity than general private equityFund has gradually become an important asset allocation category for financial institutions.

Responsible editor: Gao Shuai | Review: Li Zhen | Director: Wan Junwei

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