Core Viewpoint - The article discusses Shenzhen's initiative to attract overseas sovereign wealth funds through a comprehensive work plan that includes 10 policies and 24 measures aimed at investing in strategic emerging industries and infrastructure [1][4]. Group 1: Policy Framework - The work plan consists of 10 policies and 24 measures designed to enhance the investment environment for overseas sovereign funds in Shenzhen [4]. - Key policies include establishing a city-wide coordination mechanism, promoting the establishment of overseas sovereign fund institutions in Shenzhen, and enhancing cross-border investment facilitation [5][6]. - The plan emphasizes the importance of aligning investment targets with the preferences of sovereign funds, focusing on long-term value and sectors like green technology and hard tech [5][6]. Group 2: Investment Opportunities - The work plan aims to promote high-value investment projects within Shenzhen's "20+8" modern industrial system, targeting projects with clear investment prospects and significant industrial impact [5][6]. - It encourages sovereign funds to invest in infrastructure and real estate through various channels, including REITs and QFLP structures [5][6]. - The initiative also seeks to foster collaboration between sovereign funds and Shenzhen's leading private enterprises in international trade and investment [6]. Group 3: Market Context - Sovereign wealth funds are increasingly focusing on the Chinese market, with 62% of investments coming from the Middle East, amounting to nearly $10 billion in 2024 [8]. - Notably, Singapore's Temasek Holdings allocates 18% of its overall investment portfolio to China, indicating a strong interest in the region [8]. - Shenzhen's strategic advantages, such as its location in the Guangdong-Hong Kong-Macau Greater Bay Area, position it as a key entry point for overseas capital into China [11].

Fundraising - In 2024, there has been a noticeable increase in medium to long-term capital entering Shenzhen's private equity and venture capital industry, with the number of institutional investors rising to 17,110 and total contributions reaching 835.86 billion yuan, reflecting year-on-year growth of 0.76% and 0.41% respectively [1][2] - The participation of medium to long-term capital has increased by 16.74% compared to 2023, with total contributions amounting to 238.11 billion yuan [1] Investment - The focus on "early investment, small investment, and hard technology" has shown significant results, with investments in seed and startup projects reaching 9,462, marking a year-on-year increase of 4.28% [3] - Investments in small and medium-sized enterprises have also increased, with 13,732 projects funded, a growth of 3.87% year-on-year, and investments in initial technology enterprises rising to 5,678 projects with a total investment of 98.76 billion yuan, reflecting increases of 8.86% and 9.03% respectively [3] - Investment in high-tech enterprises has reached 10,899 projects, with a year-on-year growth of 5.71%, and an average annual growth rate of 11.14% over the past three years [3] - The private equity and venture capital industry in Shenzhen is aligning with the "20+8" strategic emerging industry cluster plan, with 4,893 projects and total investments of 110.99 billion yuan in these sectors, showing year-on-year growth of 2.11% and 0.96% respectively [3] Exit - The exit channels for the private equity and venture capital industry in Shenzhen have become increasingly accessible, with 1,954 exit projects in 2024, the highest in three years, and actual exit amounts reaching 58.83 billion yuan, a significant year-on-year increase of 70.28% [4] - The primary exit methods remain agreement transfers and corporate buybacks, with 1,369 projects completed through these channels, yielding an actual exit amount of 33.84 billion yuan, reflecting year-on-year growth of 107.11% and 81.25% respectively [4] - The public market exits have also seen strong growth, with 331 projects exiting through IPOs and other means, totaling 22.24 billion yuan, marking increases of 89.14% and 104.50% year-on-year [4] - Notably, the performance of overseas listings has been exceptional, with 28 projects achieving this in 2024, resulting in an exit amount of 2.21 billion yuan, which is 10.87 times that of 2023 [4]