Hinova Pharmaceuticals (SH:688302) Nan Fang Du Shi Bao·2025-09-02 23:12Core Viewpoint - Shenzhen's village collective economy is undergoing a significant transformation, with the establishment of venture capital funds aimed at investing in strategic emerging industries, particularly in artificial intelligence [2][3][4]. Group 1: Fund Establishment and Scale - Two venture capital funds, the Sakata Artificial Intelligence Venture Capital Fund and the Longgang Longxing Venture Capital Fund, have been launched with a total scale of 300 million yuan, with a 10-year duration and a focus on AI and strategic emerging industries in Shenzhen [2][5]. - Nearly 40 village cooperative companies in various districts of Shenzhen have engaged in venture capital activities, indicating a broader trend beyond just these two funds [2]. Group 2: Transition from Rental to Investment - The traditional rental income model has reached its limits, prompting village collectives to seek new growth avenues through venture capital, which presents a higher risk-reward profile compared to stable rental income [3][4]. - The South Ling Village has pioneered this transition by establishing the first venture capital fund management company controlled by a village collective in 2017, leading to multiple investments in high-tech sectors [4][5]. Group 3: Challenges and Governance - The shift from being landlords to shareholders involves not only changes in funding allocation but also a fundamental rethinking of governance and decision-making processes [6][7]. - Experts emphasize the need for proper fund isolation, a dual revenue model combining rental and equity, and the establishment of a scientific decision-making mechanism to mitigate risks associated with venture capital investments [6][7]. Group 4: Unique Advantages and Collaboration - The collaboration model involving state-owned assets, village collectives, and professional institutions is seen as a unique approach, leveraging the village collectives' proximity to enterprises for better oversight and resource allocation [8][9]. - Village collectives are positioned as limited partners in the funds, allowing professional teams to manage investments while providing local insights and support [8]. Group 5: Limitations and Future Outlook - The scale of venture capital investments from village collectives remains small compared to their overall assets, indicating that this is still a tentative exploration rather than a full-scale shift [9][10]. - The transformation of Shenzhen's village collectives from rental income to venture capital is a response to economic realities, policy changes, and industry dynamics, requiring careful risk management and governance to ensure stability [9][10].