CICC New Economy Fund Closes RMB 3 Billion First Close for Fund IV, Focusing on Five Strategic Investment Sectors

On May 10, 2022, China Renaissance New Economy Fund, the private equity fund under China Renaissance, announced the successful first closing of its fourth RMB fund, raising RMB 3 billion. The fundraising attracted government guidance funds, funds of funds (FOFs), financial institutions, family offices, and companies/entrepreneurs within the China Renaissance ecosystem.

As a private equity fund rooted in the Chinese domestic market and maintaining a long-term bullish outlook on China’s development prospects, China Renaissance New Economy Fund has grown while serving the nation’s innovation-driven development strategy. With the continuous deepening of innovation, and on the eve of China’s impending wave of intelligent economy, the fund has clearly identified intelligent manufacturing, digital health, technology, enterprise services, and new consumption as its key investment directions, laying a solid foundation for seizing the opportunities of the era.

In a letter to limited partners, Bao Fan, Chairman and CEO of China Renaissance Holdings Limited, Founding Partner and Chief Investment Officer of China Renaissance New Economy Fund, stated: “As the new round of technological and industrial revolutions accelerates, the traditional economy is experiencing comprehensive digital penetration. We have reason to believe that an intelligentization wave is sweeping in, bringing a new wave of innovation opportunities over the next decade—namely, the widespread application of intelligent technologies across all sectors of the national economy. Therefore, we will continue to adhere to our focus on the intelligent economy theme, concentrating on five key areas: smart manufacturing, technology, digital health, new consumption, and enterprise services. Within these domains, we seek out leading enterprises that leverage technological innovation to drive China’s transition toward an intelligent economy, thereby injecting new momentum and vitality into the country’s economic development.”

Since 2013, China Renaissance has been engaged in private equity investment management, continuously diversifying its industry portfolio in recent years while pursuing steady progress.

As the flagship product under China Renaissance’s investment management business, the China Renaissance New Economy Fund currently manages four U.S. dollar-denominated funds and four RMB-denominated funds.

In recent years, China Renaissance New Economy Fund has continued to exert strong momentum in its investment sectors, delivering outstanding performance. Not long ago, the fourth U.S. dollar fund of China Renaissance New Economy Fund completed a new round of closing, with committed capital reaching nearly $800 million in less than nine months, surpassing the total amount raised by the previous U.S. dollar fund.

Robust investment capabilities and outstanding performance are inseparable from an excellent team and a clear strategy. Since its establishment in 2013, Huaxing New Economy Fund has focused on opportunities within strategic sectors aligned with national priorities. It structurally analyzes industrial trends from a higher-dimensional perspective, adopting an end-goal-oriented approach that combines top-down research with bottom-up opportunity identification. The fund is committed to providing unique and high-value-added services to its portfolio companies, continuously refining its investment methodology to build a distinct competitive advantage.

Meanwhile, Huaxing New Economy Fund has been continuously increasing its investment intensity in key sectors, each of which boasts star portfolio companies, such as MGI Tech, SVOLT, Li Auto, Fapon Biotech, POP MART, Calterah, and NavInfo Semiconductor.

Bao Fan stated that, going forward, Huaxing New Economy Fund will continue to identify high-potential companies with significant growth prospects in the intelligent economy sector. By leveraging its professional expertise and full-lifecycle service capabilities, the fund aims to secure scarce investment opportunities, provide more targeted support to portfolio companies, generate superior returns for limited partners (LPs), and create value for society and the economy.