More than 170 financial institutions now have outlets in the area

A government fund of funds, or FOF, established by an investment company in the Weifang Hi-Tech Industrial Development Zone, is set to support industrial upgrading.

Meanwhile, the zone has cooperated with fund management companies such as China Creation Ventures and Tsinghua Holdings to launch structural funds.

"We will benefit from the government fund because it can provide continuous financial support to us," said Yu Hairui, founder of Weifang Conqueren Bioscience & Technology based in the hightech zone, during a meeting with government staff members from Weifang Hi-Tech Industrial Development Zone in June.

Conqueren is a bioscience company that combines research and development, production, sales and consulting services under one roof. Its development was constrained because of a lack of capital, though it has professional R&D and operation teams.

"The agricultural industry is changing and it requires leading companies to maintain a competitive edge in product quality, marketing, sales channels and services. All those need capital," Yu said.

Apart from setting up the FOF, the zone's investment and financing management service center also strives to establish closer ties with financial institutions.

This year, the center has contacted many fund management institutions to learn how to better manage funds and better serve companies. As of the end of July, 177 financial institutions had outlets in the zone, including 16 banks, 18 insurance companies, 11 securities companies and 39 fund management companies.

Huang Yu, deputy general manager of a fund management company from Tianjin, said the zone's financial support mechanism will benefit high-tech industries and establish a foundation for introducing new funds.

The financial companies are providing plenty of capital to the zone. In the first quarter of 2019, total deposits by companies in the zone were 75.7 billion yuan ($10.5 billion) and total loans were 58.7 billion yuan.

According to the zone's government, the establishment of the FOF must be based on the real needs of enterprises. As a result, the zone's officials arranged many visits to listen to companies' opinions and provide solutions to their problems. Calls and online discussions are also ways for the zone to collect opinions.

On May 24, the zone unveiled a guiding policy to support companies seeking to list in the capital market.

"The zone's authorities will strive to identify companies with strong potential to be listed and provide all types of services to support companies' endeavors," said Cao Guoliang, deputy general manager of the investment department of Weifang Hi-Tech Zone Guochuang Investment Co.

As of the end of July, 117 companies had listed on stock exchange markets and China's National Equities Exchange and Quotations, and had raised 188 million yuan in capital.

Some companies are preparing to launch initial public offerings, including Power HF and Shengyuan Group.

Shengrui Transmission Corporation, which developed the world's first front-engine, front-wheel-drive hybrid eight-gear auto transmission, is working toward listing on China's science and technology innovation board.

tangzhihao@chinadaily.com.cn

Shengrui's technicians closely examine gearbox components before delivery to ensure the products meet the strict requirements of clients.Provided To China Daily

Home to dozens of financial institutions, the technological financial park in Weifang Hi-Tech Industrial Development Zone is a key driver for local growth.Provided To China Daily

(China Daily 08/28/2019 page12)