母基金研究中心·2025-08-08 10:37Core Viewpoint - The establishment of S funds by state-owned enterprises (SOEs) is gaining momentum, driven by favorable policy changes and increasing market recognition of S transactions [2][3][4]. Policy Environment - Recent guidelines from multiple government bodies emphasize the development of secondary market funds, including S funds, to enhance the exit channels for equity investments [2]. - The introduction of a national-level document promoting the development of government investment funds is seen as a significant breakthrough, aiming to optimize the transfer processes and pricing mechanisms for S funds [6]. Market Trends - The S fund industry is transitioning from a fragmented to a systematic approach, with a shift from opportunistic to strategic investments [3]. - The number of S funds initiated by local governments and SOEs has surged, indicating a robust growth in the sector [4][5]. - Insurance companies are increasingly participating in S fund transactions, viewing them as attractive long-term investments amid declining interest rates [8]. Fund Establishments - Notable S funds include the 100 billion RMB S fund launched by China Construction Bank and various regional funds across provinces like Jiangxi, Fujian, and Zhejiang, with target sizes ranging from 5 billion to 50 billion RMB [2][3][4]. - The establishment of S funds is often aimed at acquiring past investments and project shares, which is expected to enhance the liquidity and professionalism of the private equity secondary market [4]. Investment Opportunities - The current market conditions present a unique opportunity for S funds, especially as insurance companies seek to diversify their portfolios and ensure returns amid low interest rates [8]. - The anticipated growth in S funds and the diversification of investment strategies are expected to lead to a more active and mature S fund market in the coming years [9].