The launching ceremony of the Three Gorges Industrial Guiding Equity Investment Fund and its press conference were held in the downtown area on March 11. 13 subsidiary funds had their official launching and entering ceremony in Yichang. The establishment and operation of the Three Gorges Industrial Guiding Equity Investment Fund means that Yichang has explored an innovative way of financial investment: using small project to attract more business investments, consolidating the discrete money into a whole, building the new model of industrial development which backed by the collaborative support from the government and social capital as well as the financial capitals together, thus providing new impetus for the building of ten a-hundred-billion industry construction of Yichang.

Ma Xuming, the deputy secretary of the municipal party community and mayor of Yichang, as well as many other important high-level government officials attended the launching ceremony.  

During the launching ceremony, the municipal government signed a strategic cooperation agreement with 14 financial institutions from banks like the branch of China Construction Bank in Hubei province and the branch of Industrial and Commercial Bank of China in Hubei province, which will provide more than 106 billion yuan for the financial support to the funds and project investments led by the Three Gorges Industrial Guiding Equity Investment Fund and the strategic cooperation agreement among these 8 companies including the Three Gorges Industrial Guiding Equity Investment Fund and the Three Gorges Capital Holding Limited - liability Company as well as CCB Trust Co., Ltd are worth 33.5 billion yuan. In addition, other five investment institutions (e.g.: Yichang Yue He Stock Equity Investment Fund Management Co., Ltd.) signed a cooperation agreement to build five branch funds of certain investment funds with a total size of 1.8 billion yuan.

Ma said that developing government-guiding fund and promoting equity investment are of great significance in the implementation of the supply- side structural reform: it is a pragmatic and active fiscal policy and serves as a significant measure to advance our industries step into a middle-high level stage as well as an important institution innovation for transforming government functions, enhancing fiscal governance capability and improving efficiency. He also stated that using the Three Gorges Industrial Guiding Equity Investment Fund in a flexible and better way has a great and far-reaching effect on the building of a new model of economy development way featuring reducing redundant capacity, cutting inventory, lowering cost, remedying the deficiency, the conversion of the energy using, the stimulating of the market vitality and social creativity, the promotion of public entrepreneurship and mass innovation, the reshaping of the economic growth dividend of Yichang and the realization of “two leaderships and two upgradings”.

The financial support of the Three Gorges Industrial Guiding Equity Investment Fund includes two parts with a total value of 10 billion yuan as its guiding fund, including 5 billion yuan from the municipal Finance Bureau and 5 billion yuan from the municipal state-owned holding group. And it is necessary to use the promising fund projects to attract more fund investments from the finance department and society to build about 20 subsidiary funds with a total size of more than 50 billion yuan. Furthermore, what need to be mentioned is that we need to provide new impetus for the efficiency upgrading of the transformation of economy in Yichang by giving full play of the leading role of the financial policies, the catalytic effects of fiscal funds, the leveraging function of the financial leverage and by realizing the direct investment of the industrial project (worth more than 200 billion yuan) brought by the subsidiary funds through its equity-driven investments.  

The establishment and operation of the Three Gorges Industrial Guiding Equity Investment Fund always adheres to the ideas of innovation and development, which innovates the way of financial investment and helps realize the transformations from “creditor’s right” to “stock equity”, from financial balance to capital finance, from traditional finance to modern finance; it always stands firmly in the main line of serving the real economy and better plays the decisive role of market in allocation of resources to realize the organic unity of the different attributes of the government public function and the capital market function; it has always being a staunch support for the concept of government guidance, social participation, market operation and professional management; it always follows the principle of specialization, marketization and  internationalization, letting the professional people fulfill their duties. And the establishment of the subsidiary funds is based on the advantages of the location superiority of the Three Gorges industry, the local government’s response to the policies of the states, the development plan of the Yangtze River economic belt, the help of the domestic and foreign investment institutions and so on; focusing on the advantages of the industry in Yichang, emphasizing the spirit of creation and the Two-wheel driven strategy as well as closely linking to the ten a-hundred-billion industries and the strategic emerging industries, with the listing Corporation and key enterprises as its leader, the sub-fund vigorously develops the capital market and builds Yichang into an ideal investment base by adhering to the operation rules of life cycle of the entity enterprise.   (Reporter Wei Wei)