(9 November 2009, Hong Kong) — China Everbright Limited (“Everbright”) and Wuxi Guolian Financial Investment Group Co. Ltd. (“Wuxi Guolian”) announced that the inauguration ceremony for Everbright Guolian Capital Co. Ltd. (“Everbright Guolian Fund” or “the Fund”) — a 500 million yuan venture capital fund jointly established by Everbright and Wuxi Guolian—was held in Beijing. The launch of this Fund marks another major step in Everbright’s implementation of its “3+2 Macro Asset Management” strategy, which focuses on asset investment and fund management. 

 

Everbright Guolian Fund is a venture capital fund operated as a company that primarily invests in new and/ or hi-tech Chinese companies and venture capital enterprises seeking listing on the SME Board and GEM Board in China. These companies cover a wide range of sectors such as alternative energy, new materials, biological and pharmaceutical products and services, energy conservation, culture and creativity industry-related ventures, electronics and information technology, modern service industries, and precision manufacturing. The Fund will also invest in leading innovative niche businesses that demonstrate creativity and originality in terms of their business models and service levels. 

 

Wuxi occupies a central location in the Yangtze River Delta and is one of China’s 15 economic centers and 10 key tourism cities. It is also the cradle of China’s national industry and a well-developed industrial base. In recent years the Wuxi government has been promoting the advancement of local industry, and the city is now home to nearly a thousand innovative companies. Many of these, like the highly successful Suntech Power, operate in hi-tech and benefit from the Wuxi government’s “530 Plan” (see remarks) to nurture such enterprises. 

 

As a large-scale financial and industrial holding conglomerate under the Wuxi government, Wuxi Guolian is engaged in venture capital investment, private equity investment, M&A and restructuring. Notable successes include the Suntech venture capital investment as well as the merger and acquisitions, and restructuring of Wuxi Little Swan Holdings Limited. 

 

Everbright said, “Everbright Guolian Fund leverages Everbright’s extensive professional management experience in finance and investment, vast marketing network, and sizeable reserve of projects in mainland China that have been built through cooperation with all levels of government. On the other hand, the local influence, broad network and strong resources of Wuxi Guolian will enable the fund to identify hi-tech projects with significant growth potential. In addition, Everbright’s world-class management platform can facilitate the rapid growth of invested companies and generate significant return for shareholders.” 

 

Remarks: “530 Plan” was launched by Wuxi government in 2006, aiming to attract overseas Chinese students returned to start their business and investment platform. 

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