Cases
Hylands Provides Legal Services for the Establishment of Xinjiang’s First CNY 10 Billion Industry Guidance Fund
To fully implement the spirit of the 17th conference of the Autonomous Region State-owned Enterprise Reform and Development Promotion Committee and the Autonomous Region Party Committee’s Comprehensive Deepening Reform Committee and the Opinions of the Party Committee and People’s Government of the Autonomous Region on Deepening Reform and Perfect the System to Speed up the High-quality Development of State-owned Enterprises (XDF [2022] No.10) issued on September 21, 2022, Xinjiang’s first ten-billion-scale industry guidance fund, the Xinjiang Industry Development Investment Guidance Fund, was officially inaugurated at the 7th China-Eurasia Expo Financial Forum.
The Guidance Fund, with a total size of CNY 10 billion, adopted a limited partnership with Xinjiang New Kinetic Energy Equity Investment Management Co. Ltd. as the general partner and fund manager. As the legal adviser for the establishment of the Fund, Hylands provided legal services for the establishment and filing of the Xinjiang Industrial Development Investment Guidance Fund (Guidance Fund).
Based on the principle of ‘government guidance, market-oriented operation, professional management, and risk prevention; the Guidance Fund is intended to be used for promoting the readjustment of the Autonomous Region’s economic structure, industrial transformation, and upgrading, strengthening capital operation, improving the level of capital securitization, and initiating social capital to jointly promote the high-quality development of the Autonomous Region’s characteristic advantaged industries and advantageous industries and strategic emerging industries. In the future, the Guidance Fund will be used to speed up the building of an industrial fund cluster of ‘1 (parent fund)+N (sub-fund)’, to attract social capital and financial institutions and other funds to jointly invest in the Autonomous Region’s strategic emerging industries, characteristic advantaged industries, regional leading enterprises and enterprises featured with specialization, refinement, characteristic and novelty, as well as small enterprises with good performance, great development potential and nurturing value at the early stage of growth. The Guidance Fund will also be applied to ‘attract funds into Xinjiang’, ‘introduce projects into Xinjiang’ and ‘introduce technology into Xinjiang’, to change policy investment into capital investment, form a capital supply effect, promote the adjustment of the Autonomous Region’s economic structure and the transformation of the growth pattern, and contribute capital power to the autonomous Region’s real economic development.
The legal service team of Hylands in the project was under the management of the partner and attorney Wenhao DONG, attorney Weiyong CHEN, the head of the Urumqi Office, Siqing LUO, and Han LI. They participated in all stages of the project and provided legal services for the product filing of the privately offered fund, including the drafting, reviewing, and revising of the Guidance Fund System and the product filing documents.
Hylands officially opened its Urumqi Office at 37/F, Block 1B, Lvcheng Plaza, Shuimogou District, Urumqi in March 2022. With the support of the Urumqi Office, Hylands will better serve Xinjiang and provide multi-level, multi-dimensional, professional, and efficient legal services for Xinjiang’s enterprises and customers.