Haitong Securities and Guotai Junan Securities recently announced that they will each launch the industry guidance fund of funds (FOF) in Shanghai's Pudong New Area with an initial financing scale of about 4 billion yuan ($554.79 million). 

Together with the second phase of the Yangtze River Delta FOF, which was unveiled by Growth under Shanghai International Group in February with a scale of 7.1 billion yuan, Pudong's development fund has seen a huge expansion as the three industry guidance FOFs take shape with a scale of 15 billion yuan in the first phase. They are expected to attract about 100 billion yuan in sub-funds over the next three years.

Pudong's development fund focuses on industrial aggregation, key projects and the construction of a growing industrial ecosystem. It is meant to support the development of an incubation platform for scientific and technological innovation, promote strategic emerging industries and inject more social capital into Pudong's industrial development.

Run by fund managers from Shanghai International Group, Haitong Securities and Guotai Junan Securities, the three FOFs represent a higher level of resource integration. The target investors of the funds include top-tier insurance companies, central State-owned enterprises, local State-owned enterprises and private listed companies. They will integrate various high-quality resources to empower Pudong's industrial development.

As the manager of the development fund, Pudong Investment Holding has preliminarily established a comprehensive closed-loop system covering "fund raising, investing, managing and exiting". The company will participate in the investment and management of each FOF and be the driving force behind State-owned capital.

Pudong Investment Holding has recently initiated the Pudong Science and Technology Industry Development Angel Fund after previously investing in the S fund led by Shanghai State-owned Capital Investment Co. It will make good use of the experiences of the funds, boost the integrated growth of "technology, finance and industry" and create a model for the high-quality development of the industry.