Since its inception under the support of Beijing’s municipal government, Shougang fund is committing to the transformation and improvement of Shougang Group, serving the real economy through financial services, which have provided strong support for the development and construction of the new Shougang high-end industrial service area and Beijing (Caofeidian) modern industrial development test area, and promoted the structural reform of Shougang from the traditional manufacturing industry to the advanced manufacturing and modern service industry. With the explorations of the past few years, Shougang Fund Company gradually finds a new path of enhancing the structural reform that is "Finance drives the improvement of the real economy's efficiency and capital leads the demand for innovation". In the first half of 2017, according to the strategic plan of the Group, Shougang Fund Company carried out work around the "13th Five-Year Plan" and the annual plan, and the overall operation was on a good path and all work progressed smoothly. As of June 30, 2017, the number of funds managed by the Company is 12, and fund management scale (commitment to capital) reached 48 billion yuan. In April 2017, during the China Venture Investment Institution List Award Ceremony (the most authoritative selection institution in the domestic investment sector), Shougang Fund was ranked in the Top 10 of China's Institutions for Most Growth Potential of Private Equity Investment, and was honored with other awards.

Finance drives the development of real economy

Constantly Optimizing and Improving Industrial Structure

To promote the structural reform on the supply side, we must first start from the production side. The top priority is to effectively solve the problems of excess capacity, and improve adaptability and flexibility of the supply structure against the demand for change.

The in-depth integration of "Internet +" is the effective path to solve the problems present in the Shougang Fund companies.

In 2015, Shougang Fund Company set up the country's largest steel industry chain business platform - zhaogang.com. With the help of "Internet +", it has accurately matched the supply side with the demand side, helped iron and steel enterprises transform from the market demand, and changed the pattern of "basing sales on production and extensive production" to "basing production on sales prospects and order-based production," and then constantly adjusted their products structure, achieved fine production and completed the "evolutionary upgrade" in the supply side.

In 2016, Shougang Fund Company made further financial innovations and created "ZhaoTongbao," and promoted the cooperation between Shougang Tonggang Company and zhaogang.com, which helps the Tonggang company activate existing stocks, cut excess inventory and improve sale turnover efficiency. This practice has not only helped the company sell products to South China, East China and even export to overseas, but it has also simplified the process and substantially improved efficient allocation of resources of iron and steel enterprises. Since its inception in September last year, "ZhaoTongbao" cooperated with zhaogang.com’s platform to sell 220,000 tons of steel from Tonggang Company, with the cumulative turnover of 770 million yuan, which has shortened the turnover time of sales from 1 month to 10-15 days.

The thorough implementation of the "integration of production and financing" is the optimization path for Shougang Fund Company.

The accelerated development of the real economy is equivalent to the speeding up of a vehicle, which requires removing roadblocks, filling up the tank with high-quality oil. The thorough implementation of combining finance and industry is an approach that accelerates the development.

In 2015, Shougang Fund registered a wholly owned subsidiary- "Beijing-Hebei Capital" in Caofeidian District, Tangshan City, and set up Caofeidian development funds with a total size of 10 billion yuan. This fund aims to improve the infrastructure in the Caofeidian area and boost the industrial development, as well as help Beijing's relocated enterprises settle in the Caofeidian area, and provide long-term support to enhance the cooperation and development between Beijing and the Caofeidian area.

With this fund, various large-scale infrastructure projects are implemented at high speed, such as Tang-Cao, and high-quality medical education resources are introduced into the local area, which enhances the industrial environmental protection and industrial improvement. Shougang Langze Company, an energy-saving and environmental protection industrial project that Shougang Fund invested in, is committed to producing clean energy fuel ethanol with industrial gas manufacturing, which can effectively reduce carbon dioxide and particulate emissions. As of 2018, it is estimated that the company will reduce 1.8 tons of carbon emissions per one ton of ethanol fuel. After this project is implemented, the company will contribute about 35.9 million yuan per year for Hebei province. The industrialization of energy-saving environmental protection project driven by the fund platform will not only promote environmental governance but also enhance the development of the industry.

Through the integration of resources, coordination and linkage, improvement of quality and efficiency, and optimization of supply, Shougang Fund has given full play to the financial support, enhanced transformation and improvement of the real economy.

The capital injection innovation platform leads to new demand and gives birth to new supply

The social history of large-scale production has told us that, whenever the supply side has successfully achieved subversive innovation, the market will respond with magnificent trading volume. Each industry and technology innovation can enhance the development of productive forces in different degrees, creating new market demand and enhancing the development of the supply of power.

Shougang Fund's entrepreneurial community, a national-level maker space and state-level science and technology incubator, can provide convenient office space, broad market channels and advanced financial services for numerous start-ups through its own advantages, thus building the perfect environment and making in-depth incubation, as well as accelerating the growth of enterprises. At present, the entrepreneurial community has provided help for more than 6,000 companies and registered 500,000 enterprises, provided nearly 100 enterprises with industry leading resources, cultivated 97 start-ups, 8 new three board listed enterprises, 14 Zhongguancun gold seed enterprises, 128 Beijing four board listed companies, and 5 companies that were acquired by listed companies. The total value of incubated enterprises exceeds 20 billion yuan. What's more, a variety of AI, VR and high-tech products manufactured by incubated enterprises immediately attracted the attention of consumers and brought out a number of "new fans" when launched on the market. The entrepreneurial community becomes a national "double" high-quality platform and an integrated service provider that promotes innovation and leads the demands.

Innovation and lead demand is also reflected in the advanced strategic layout, that is, the concept of innovation and development boosts the development of new technology, industries and formats. Shougang Fund will focus on the supply chain and finance, improvement of health care, sports and entertainment-based consumption, big data and artificial intelligence, parking-based infrastructure and intelligent city, as well as emerging strategy industry sectors such as new energy vehicles and equipment manufacturing. Shougang Fund has taken the following initiatives: Invest in China's tennis tournament, strategically support the Beijing Olympic Winter Games, drive people's consumption demand in sports entertainment; win the bidding of constructing Beijing’s new airport parking building, promote three-dimensional parking projects, enhance the construction of intelligent city, drive people's modern-life consumption demands; invest in new energy vehicle and guazi.com’s platform, implement the chain of high-end production and advanced marketing, drive people's consumption demands for green travel ... ... Shougang Fund invests capital into the innovation platform, and actively develops the modern service industry and advanced manufacturing industry, creates new demand, and provides steady internal impetus to the sustained and healthy development of the real economy.

This year's National Financial Work Conference stressed that: "Finance is the foundation of the real economy, and its duty is to serve the real economy." In recent years, the new Shougang Fund achieved its own leapfrog development in the process of continuing to serve the real economy, but also summarized the practice experiences in its exploration. In the tide of structural reform on the supply side, the real economy can only keep solid and steady growth when the financial institutions boost the transformation on the supply side and focus on creating new demand, thus realizing their own value. With the approach of "capital-driven industrial development, industry carrying capital operation" and giving attention to both sides, Shougang Fund Company will thoroughly implement a series of reforms to boost the healthy development of the national economy and continue to move forward and aim for the title of "Top Domestic Mergers and Acquisitions Industry Funds in Sub-sector and Excellent Government Fund Manager!"