On December 28, 2011, Shanghai Real Power Emerging Industry Investment Fund (RMB and US dollar), a subsidiary of SIG, announced a successful launch of a RMB 7 billion fund. Mr. TU Guangshao, a member of the Standing Committee of the Shanghai Municipal Party Committee and Vice Mayor of Shanghai, attended the celebrating ceremony and delivered an important speech. Leaders from relevant departments of the Shanghai Municipal Government and Shanghai Stock Exchange, Mr. JI Xiaohui, Chairman of Shanghai International Group (SIG), Mr. SHAO Yaliang, President of SIG and other senior management of SIG attended the celebrating ceremony too.

In his important speech made in the ceremony, Mr. TU pointed out: “The successful launch of Shanghai Real Power Emerging Industry Investment Fund is of great importance in three areas. First of all, against the backdrop of constant improvements in financial system and financial market structure, SIG plays an important role as Shanghai’s financial investment and service platform in gathering financial resources. Secondly, this is an important bolster for Shanghai to achieve structural adjustment and economic transformation in next step. Shanghai is facing the critical moment to adjust its industrial structure and develop the economy in new ways. The successful launch of Shanghai Real Power Emerging Industry Investment Fund will greatly speed up the economic transformation and structural adjustment in Shanghai, especially the development of strategic emerging industries. Thirdly, also this is a new achievement gained in Shanghai’s development of an international financial center. Shanghai’s development of an international financial center focuses on capital market and financial market system. The development of equity investment funds itself is an important embodiment of Shanghai’s increasingly improved function as an international financial center.”

Mr. JI Xiaohui, Chairman of SIG, added: “The successful launch of Shanghai Real Power Emerging Industry Investment Fund is SIG’s another important measure in response to Shanghai’s development of an international finance center. Through the leveraging function and role-model influence of state-owned capital, the fund can attract professional talent both from domestic and overseas and thus will help enhance SIG’s brand, solidify SIG’s overseas business platform and boost SIG’s development into a strategically-controlled stated-owned financial conglomerate.”

Mr. SHAO Yaliang, President of SIG, congratulated: “The successful launch is worth cerebrating and also a new start full of challenges.” He expressed confidence in the Real Power team, believing they would work hard, disciplinarily and fruitfully, creating new value for emerging industries and promising return for investors.

Shanghai Real Power Emerging Industry Investment Fund is another great achievement after SIG’s successful management of Shanghai Financial Sector Investment Fund (1.1trillion RMB) and Shanghai Guohe Modern Service Industry Private Equity Fund (5 billion RMB). The investors of Shanghai Real Power Emerging Industry Investment Fund include state-owned companies, listed companies, well-known private companies and overseas investment institutions. The fund will be focused on investing in seven strategic emerging industries supported by national industrial policies, such as environmental protection, information technology, biotechnology, high-end equipment manufacturing, new energy, new materials and new energy vehicles, and selectively in consumption, healthcare, services and other people’s livelihood-related industries. Supported by SIG’s brand and resources, the fund will be actively involved in investment, M&A and IPOs of domestic emerging industries. By leveraging and consolidating multiple resources and self-advantages, the fund will provide both financing and value-added services to its portfolio companies.

The successful launch of Shanghai Real Power Emerging Industry Investment Fund shows the confidence of both domestic and overseas investors in the future of China’s emerging industries and economic transformation. Also it is one of the great results achieved by the pilot companies of Shanghai’s foreign-invested equity investment funds. It will further help Shanghai to attract more onshore and offshore PE funds, and boost its development of an international asset management and financial center.