2023-5-12 Guangzhou - Shenzhen
WISER Group, a China-based cross-border investment advisory & venture partner (“WISER”), and ZhongBao Fund, backed by the two Global Fortune 500 Company China CITIC and Poly Group(“ZhongBao”), today announced to enter into a partnership agreement in the QDLP outbound investment especially across Nordic and China, to jointly bring industrial investment capital from China to Nordic growth companies and accelerate their China-entry.
The two parties will apply for the license of Qualified Domestic Limited Partners (“QDLP”), which is the main outbound investment vehicle as per China financial regulatory authority, and further to launch the first Nordic-market oriented QDLP fund in China. The QDLP fund aims to raise RMB capital from selected industrial companies and/or public listed companies in China, and then invest into Nordic companies which have high growth potential in China. The target companies, in the first phase, will mainly be small and medium-cap companies that have been listed on major European capital markets, and have core technologies in high-tech and life sciences. These companies shall have disruptive products or solutions that can be quickly commercialized and/or scale up market share in China.
“We are excited to partner with ZhongBao in the first QDLP fund which would provide a key pillar for Nordic companies to accelerate its global expansion especially the market-entry to China,” said Kevin Chen, Managing Director of WISER Group. “For Nordic technology companies, China is not only a massive market for its products, but also a more open & dynamic market for outbound investments. We believe the partnership with ZhongBao as the leading investment management firm in China, would enable us to jointly provide the unparalleled business network & financial resources for Nordic companies to enter & scale up in China.”
“We are glad to partner with WISER in the QDLP to expand our outbound investment capabilities to Europe.” Said Mr Lv Zhanyu, Managing Director of ZhongBao Fund. “ZhongBao is a market-oriented and professional private equity investment fund management institute in China. Our shareholders include China CITIC Securities and Poly Group, which could provide strong resources to our cross-border investments. We already received the QFLP (Qualified Foreign Limited Partners) for inbound investments and now the QDLP will become an essential puzzle to our global investment management layout.”
QDLP is a pilot policy launched by the China government to facilitate easier outbound investments. Specifically, QDLP refers to raising RMB funds from domestic investors and investing in overseas markets through the establishment of private equity funds. The scope of investment includes both the primary market such as unlisted equity and debt, and the secondary market such as the securities market.
With the development of China's economy, the demand for overseas investment continues to grow. In the past, traditional investment methods took a long time to approve and the approval process was relatively cumbersome. The QDLP channel is conducive to breaking these limitations. At present, world-renowned investment institutions including BlackRock, UBS, and Allianz have obtained QDLP qualifications and are actively developing QDLP business in China. As the first city in China to pilot QDLP, Shenzhen has an annual quota of US$10 billion available for QDLP outbound investment.
About ZhongBao Fund
ZhongBao Fund, or called CITIC Poly Private Equity Fund, is a leading Chinese PE fund focusing on industrial investments, financial innovation, M&A and asset management. It is also one of the earliest established and industry-leading infrastructure fund management institutions in China. ZhongBao's main shareholders include the two Global Fortune 500 enterprises, China CITIC and Poly Group, while CITIC Securities is the largest investment bank in China/Asia. ZhongBao's portfolio includes leading industrial & listed companies in China & Asia.
About WISER Group
WISER is a cross-border strategy advisor and venture partner with a mission to help technology companies accelerate expansion and raise market capital via creating new growth opportunities with top-tier prospects in China & Asia. We proactively search, identify, and outreach fast-growing companies, with a major focus on technology, life science & sustainability in Nordic markets. WISER has advised and been advising a number of European and Nordic companies, helping them enter China and raise growth capital. WISER have a team of partners in China and Sweden. For more info about WISER, please check: www.wiserasia.com