Chapter1GeneralProvisionsArticle1TofullyharnesstheconcentratedsupportandindustrialguidancecapabilitiesoftheLiwanDistrictIndustrialInvestmentFundinGuangzhou(the“IndustrialInvestmentFund”),andtostreamlinethemanagementandoperationoftheIndustrialInvestmentFund,thesemeasuresareenacted,aimingtoexpeditetheestablishmentofamodernindustrialsystem,fostertheinnovativetransformation,andpromotethehigh-qualitydevelopmentofindustriesinLiwanDistrict.Thesemeasuresareformulatedinaccordancewiththe“NoticeoftheMinistryofFinanceonPrintingandDistributingtheInterimMeasuresfortheManagementofGovernmentInvestmentFunds”(CY[2015]No.210),the“NoticeoftheGuangzhouMunicipalFinanceBureauonPrintingandDistributingtheGuangzhouMunicipalGovernmentInvestmentFundManagementMeasures”(SCGZ[2020]No.2),andotherrelevantdocuments.TheyaretailoredtothespecificconditionsofLiwanDistrictandapplytothemanagementactivities,includingtheselection,investment,supervision,assessment,andexitoftheentrustedmanagementinstitutionoftheIndustrialInvestmentFund.Article2TheIndustrialInvestmentFund,asreferredtointhesemeasures,denotesagovernmentinvestmentfundinitiatedandestablishedbythedistrictgovernmentusingfiscalfunds.Operatinginamarket-orientedmannerandnon-profit-driven,itseekstochannelsocialcapitalintoinvestmentsinmodernurbanindustryandscientificandtechnologicalinnovation.Thefundaimstosupportthedevelopmentandgrowthofmodernurbanindustrialenterprisesandscientificandtechnologicalinnovationenterprises,therebypromotingthehigh-qualitydevelopmentofLiwanDistrict.Article3TheformationoftheIndustrialInvestmentFundadoptsthestructureofalimitedpartnership.Thegovernment'sinvestmentscaleisorganizedthroughthedistrictgovernment'sbudget,withnecessaryfundsbeingdisbursedfromthebudgetaryallocationoftheDistrictScience,Technology,Industry,andInformationTechnologyBureau.ThesefundsareincrementallytransferredtoGuangzhouLiwanDevelopmentGroupCo.,Ltd.(referredtoas“LiwanDevelopmentGroup”).Servingasalimitedpartner,LiwanDevelopmentGroup,incollaborationwiththeentrustedmanagementinstitution,establishesalimitedpartnershipenterprise(IndustrialInvestmentFund).LiwanDevelopmentGroup'ssubscribedcapitalsetsthelimitforitsresponsibilityforthepartnershipenterprise'sdebts.LiwanDevelopmentGroupisnotinvolvedintheaffairsofthepartnershipenterprise.Theentrustedmanagementinstitutionactsasthegeneralpartner,overseeingtheday-to-dayoperations,investments,andexitsoftheIndustrialInvestmentFund,andassumesunlimitedliabilityforthedebtsofthepartnershipenterprise.Thegovernment-fundedportionisplannedandallocatedbytheDistrictScience,Technology,Industry,andInformationTechnologyBureauinconjunctionwiththeDistrictFinanceBureau.Adjustmentscanbemadebasedonannualbudgetaryarrangementsandtheactualfundoperations.Additionally,theIndustrialInvestmentFundmayacceptdonationswithoutcompensationfromindividuals,enterprises,orsocialorganizations.Article4ThemanagementandoperationoftheIndustrialInvestmentFundadheretotheprinciplesof“governmentguidance,marketoperation,scientificdecision-making,andriskprevention”.Theentrustedmanagementinstitutionformulatescomprehensiveinvestmentmanagementsystemsandestablishesaninvestmentdecision-makingcommitteeresponsibleformattersrelatedtoinvestment,management,andexits.Committeemembersareappointedbytheentrustedmanagementinstitution.Toensurepolicyguidance,LiwanDevelopmentGroupassignsarepresentativeasanobservertoparticipateintheinvestmentdecision-makingcommitteediscussions.Ininstancesofviolations,irregularities,ordeviationsfrompolicyguidancebytheIndustrialInvestmentFund,theobserverholdstherighttovetobutdoesnotengageintheoperationalbusiness,dailymanagement,andinvestmentdecisionsoftheIndustrialInvestmentFund.Article5TheIndustrialInvestmentFundadherestotheprincipleof“theonewhoestablishesthefundmanagesitandactsonbehalfofthegovernmentinvestor”.TheDistrictScience,Technology,Industry,andInformationTechnologyBureau,asthecompetentdepartmentoftheIndustrialInvestmentFund,actsonbehalfoftheinvestor,leadingtheestablishmentofthefund,determininginvestmentcatalogsanddirections,overseeing,evaluating,andpromotingthepolicygoalsandeffectsoftheIndustrialInvestmentFund.IncollaborationwiththeDistrictFinanceBureau,theentrustedmanagementinstitutionisselectedandisresponsibleforfundsupervisionandperformanceevaluation.LiwanDevelopmentGroup,astheinvestor'srepresentative,aidsinthespecificimplementationoftheworkasrequiredbytheDistrictScience,Technology,Industry,andInformationTechnologyBureau.Chapter2EntrustedManagementInstitutionArticle6Theselectionoftheentrustedmanagementinstitutionwilladheretothepertinentregulationsoutlinedinthe“GuangzhouMunicipalGovernmentInvestmentFundManagementMeasures”(SCGZ[2020]No.2)throughacomprehensiveselectionprocess.TheDistrictScience,Technology,Industry,andInformationTechnologyBureau,incollaborationwiththeDistrictFinanceBureau,willexecuteanentrustedmanagementagreementwiththechosenentrustedmanagementinstitution.Article7TheDistrictScience,Technology,Industry,andInformationTechnologyBureau,alongwiththeDistrictFinanceBureau,willdeterminetheamountofentrustedmanagementfundsbasedontheannualfundallocationplanfortheIndustrialInvestmentFund.TheentrustedmanagementinstitutionisrequiredtoadministertheIndustrialInvestmentFundinaccordancewithrelevantlawsandregulations,districtgovernmentrequirements,andtheprovisionsspecifiedintheentrustedmanagementagreement.AdjustmentstotheamountofentrustedmanagementfundscanbemadebytheDistrictScience,Technology,Industry,andInformationTechnologyBureauandtheDistrictFinanceBureaubasedontheannualbudgetallocationandactualoperationalconditions.Thestandardentrustedmanagementperiodis10years,withpossibleadjustmentsmadebytheDistrictScience,Technology,Industry,andInformationTechnologyBureauandtheDistrictFinanceBureauaccordingtoactualoperationalcircumstances.Article8Theentrustedmanagementinstitutionmustfulfillthefollowingcriteria:(1)Possessindependentlegalstatusasacompany;(2)Holdregisteredcapitalofnolessthan100millionyuan;(3)Employatleast5professionalswithover3yearsofexperienceininvestmentfundsandqualificationsinthefundindustry;(4)Maintainarobustinvestmentfundmanagementsystem;(5)Demonstratesuccessfulexperienceascontributorsintheestablishmentandmanagementofinvestmentfunds;(6)Upholdsoundfinancialconditionsforthepastthreeyears,withnosignificantpenaltiesfromadministrativeorjudicialauthorities,andstrictlyadheretothemanagementofgovernment-fundedfundsinlinewiththeentrustedmanagementagreement;(7)Complywithothernationalandprovinciallawsandregulations.Article9Theentrustedmanagementinstitution'sresponsibilitiesshouldbeclearlyoutlinedintheIndustrialInvestmentFundentrustedmanagementagreement,encompassing,butnotlimitedto:(1)Establishingarobustinternaldecision-makingandriskcontrolmechanism;(2)Conductingduediligenceonprojects,preparingduediligencereports,performinginvestmentanalysis,andformulatinginvestmentplans;(3)Implementingapprovedinvestmentplans,signinginvestmentagreements;(4)Managingprojectspost-investment,providingvalue-addedservicestoinvestedenterprises(projects),supervisingandguidingtheoperationofinvestedenterprises(projects);(5)Formulatingexitplansandoverseeingprojectexits;(6)Regularlyreportingthefund'soperationalstatus,projectinvestmentmanagement,andothersignificantmatterstotheDistrictScience,Technology,Industry,andInformationTechnologyBureauandtheDistrictFinanceBureau;(7)Promptlyremittingdividends,exits,andotherfunds(includingprincipalandprofits)tothenationaltreasuryasrequired;(8)Executingotherpertinentinvestmentoperations.Article10TheentrustedmanagementinstitutionshouldselectacommercialbankwithbranchesinLiwanDistrictasthecustodianbanktoestablishadedicatedaccountfortheIndustrialInvestmentFund,implementingspecializedaccountmanagementfortheentrustedmanagedIndustrialInvestmentFund.TheIndustrialInvestmentFundentrustedmanagementagreementshouldexplicitlyoutlinetheconditionsandspecificrequirementsforselectingthecustodianbank,principallymeetingthefollowingconditionsandrequirements:(1)Recognizedbyrelevantnationalauthoritiesaspossessingthequalificationforfundcustody;(2)Maintainingsoundfinancialconditionsforatleastthelastthreeyears,withnosignificantpenaltiesfromadministrativeorjudicialauthorities;(3)Prioritizinginstitutionsthatmaintainapositivecooperativerelationshipwithgovernmentdepartmentsinconductingscienceandtechnologyfinancialbusiness.Chapter3InvestmentFocusAreasArticle11TheIndustrialInvestmentFundisearmarkedforinvestmentinenterprisesoperatingwithintheadministrativeboundariesofLiwanDistrict.Theprimaryemphasisisonsupportingmodernurbanindustries,includingurbanconsumerindustries,biopharmaceuticals,healthindustries,new-generationinformationtechnology,newmaterialsindustries,newenergyandsmartconnectedvehicles,smartequipment,futureindustries,andtechnologicalinnovationfields.Thecentralfocusisdirectedtowardsinvestingintheconstructionprojectsofmodernurbanindustriesortechnologyinnovationindustrycarriers,aswellasseed-stage,start-upstage,growthstage,andinnovativeenterprisesexhibitingdevelopmentpotential.Article12ThefollowingscenariosqualifyasinvestmentsinenterpriseswithintheadministrativeareaofLiwanDistrict:(1)EnterpriseswithindependentlegalpersonalityregisteredinLiwanDistrict;(2)EnterpriseslocatedoutsideLiwanDistrictthatestablishsubsidiarieswithinLiwanDistrict(thesubsidiarymustbecomeoneoflarge-scaleindustrialenterprises,qualification-gradeconstructionindustryenterprises,wholesaleandretailenterpriseswithquotas,andlarge-scaleserviceindustryenterprisesincludedinLiwanDistrict'sstatisticswithin2yearsofcompletingtheinvestment).Chapter4ProjectInvestmentManagementArticle13TheoperationalmechanismoftheIndustrialInvestmentFundcentersaroundequityinvestment.Thecumulativeinvestmentamountinasingleenterprise(project)shouldnotexceed10%ofthesubscribedscaleoftheIndustrialInvestmentFund.Article14Theentrustedmanagementinstitutionisresponsibleforconductingduediligenceoninvestmentprojects.Forprojectsaligningwiththefund'sinvestmentcriteriaandrequiringfinancing,theentrustedmanagementinstitutionmustadheretoindustry-recognizedethicalnormsandbusinessstandards.Itshouldconductduediligencediligently,responsibly,honestly,andwithafocusoncreditworthiness,preparingacomprehensive“DueDiligenceReport”andcorrespondingworkdocuments.Article15Decisionsrelatedtoinvestmentprojectsmadebytheentrustedmanagementinstitutionshouldbedocumentedthroughresolutionsbytheinvestmentdecision-makingcommittee.Projectsthatmeettheinvestmentcriteriaandhaveundergoneduediligencemaybesubmittedtotheinvestmentdecision-makingcommitteeforreviewanddecision.Onlyafterapprovalbytheinvestmentdecision-makingcommitteeshouldinvestmentandexitprocessesbeexecuted.Article16Theentrustedmanagementinstitutionistaskedwithexecutinginvestmentprojects.Forprojectssanctionedthroughtheinvestmentdecision-makingprocess,theentrustedmanagementinstitutionmustexpeditiouslyfinalizelegaldocuments,suchasinvestmentagreements,andfulfillinvestmentpayments.Article17Theentrustedmanagementinstitutionmusthandletheday-to-daymanagementofinvestmentprojects:(1)Assumespecificresponsibilitiesforpost-investmenttrackingandprojectmanagement.Inadditiontomonitoringtheoperationalprogressofinvestedenterprises(projects),itmayoffervalue-addedserviceslikestrategicconsulting,capitaloperationadvice,resourcealignment,teamdevelopment,andpost-roundfinancing,facilitatingtherapidgrowthandvalueadditionofenterprises;(2)Recommendindividualstoassumerolessuchasdirectorsandsupervisorsoftheinvestedenterprise(project)asperthetermsoftheinvestmentagreement;(3)Establishadynamicriskmonitoringmechanismforinvestedenterprises(projects).Intheeventofsignificantriskissuesarisingininvestedenterprises(projects),promptreportingtotheDistrictScience,Technology,Industry,andInformationTechnologyBureauisessential,accompaniedbyproposedresponseandsolutionstrategies.Chapter5RiskManagementArticle18Theentrustedmanagementinstitutionmustestablishafundinvestmentdecision-makingandriskconstraintmechanisminaccordancewithrelevantregulations.Itshouldenhancepost-investmentmanagementtoeffectivelymitigaterisksthatmayariseduringtheoperationoffundinvestments.Article19ThefundsoftheIndustrialInvestmentFundmaynotbeinvolvedinthefollowingactivities:(1)Participatinginactivitiesbeyondfinancingguarantees,suchasguarantees,mortgages,entrustedloans,etc.;(2)Investinginsecondarymarketstocks,futures,realestate,securitiesinvestmentfunds,corporatebondsratedbelowAAA,trustproducts,non-principal-guaranteedwealthmanagementproducts,insuranceplans,andotherfinancialderivatives;(3)Providingsponsorshipordonationstoanythirdparty;(4)Attractingorindirectlyattractingdeposits,providingloans,andfundborrowingtothirdparties;(5)Undertakingunlimitedjointandseveralliabilitiesforforeigninvestments;(6)Issuingtrustsorcollectivewealthmanagementproductstoraisefunds;(7)Engaginginotheractivitiesprohibitedbynationallawsandregulations.Chapter6IncentiveandConstraintMechanismArticle20Theentrustedmanagementinstitutionimposesamanagementfee,withdisbursementfromthelimitedpartnershipenterprise.Themanagementfeeispre-allocatedbasedonthequalifiedassessmentlevelandisdisbursedafterdeterminingtheannualassessmentresults.Calculatedbasedontheactualpaid-inscaleofthefund,theannualmanagementfeeratefortheentrustedmanagementinstitutionisdeterminedthroughtheannualassessmentresultsoftheDistrictScience,Technology,Industry,andInformationTechnologyBureauandtheDistrictFinanceBureau.Itshouldgenerallynotexceedthelevelofgovernmentinvestmentfundmanagementfeesintheprovinceduringthesameperiod.Thespecificcriteriaareasfollows:(1)Iftheassessmentresultisataqualifiedlevel,theannualmanagementfeeispaidatarateof2%oftheactualpaid-inscaleofthefund.(2)Iftheassessmentresultisatanunqualifiedlevel,theannualmanagementfeeispaidatarateof1%oftheactualpaid-inscaleofthefund.(3)Iftherearetwoconsecutiveunqualifiedassessmentsoracumulativetotaloffourunqualifiedassessments,thequalificationoftheentrustedmanagementinstitutioncanbeterminatedinadvance.Chapter7ExitStrategyArticle21Thestandardtermforalimitedpartnershipenterpriseshouldgenerallynotexceed10years.Incaseoftheneedtoterminateandfullyrecoverfunds,theDistrictScience,Technology,Industry,andInformationTechnologyBureauwillnotifytheentrustedmanagementinstitution,whichwillproceedwiththedisposalaccordingtotheestablishedprocedure.Ifthetermexpireswithongoinginvestmentprojectsyettocompletetheirexit,thelimitedpartnershipenterprisemay,withdistrictgovernmentapproval,extendthetermuntilallprojectshaveexited.Duringtheextendedterm,nonewinvestmentprojectsshallbeinitiated.Article22Theentrustedmanagementinstitutionisresponsibleformanagingtheexitofinvestmentprojects,employingmethodssuchassellingonthesecondarymarketafterequitylisting,agreementtransfer,repurchase,andliquidation.Itencouragesandsupportstheentrepreneurialteamoftheinvestedenterprisetorepurchaseequityaccordingtotheexitconditionsandpricesstipulatedintheinvestmentagreement.Oncetheinvestmentprojectmeetsexitconditions,theentrustedmanagementinstitutionshouldformulateanexitplanandproceedwithprojectexitfollowingreviewandapprovalbytheinvestmentdecision-makingcommittee.Article23Followingprojectexits,profitdistributionadherestothe“returnofcapitalfirstbeforeprofit”principle.Itisdistributedbasedontheproportionoftheactualpaid-incapitalofallpartners.Inthecaseofasurplus,thegovernment'sinvestedportionisdistributedfirstaccordingtothebenchmarkreturnrate(asstipulatedbytheentrustedmanagementinstitutioninthepartnershipagreement,etc.).Afterdistributingthebenchmarkreturn,theremainingexcessreturnsareallocatedbetweenthegovernment'sinvestedportionandtheentrustedmanagementinstitutionaccordingtotheratiostipulatedinthepartnershipagreement.Investmentreturnsandinterestbelongingtothegovernmentshouldbepromptlyandfullyhandedovertothenationaltreasuryinaccordancewiththerelevantregulationsofthefinancialtreasurymanagementsystem.Lossesoftheinvestmentfundarejointlybornebythecontributingparties,andthegovernmenthaslimitedliabilityuptotheamountofitscontribution.Article24Whenthegovernmentexitstheindustrialinvestmentfund,othercontributingpartieshavetherighttoprioritizethepurchaseofthegovernment'sinvestedportionoftheindustrialinvestmentfundshares.Forthegovernment'sinvestedportionofthefundsharesheldwithin5(inclusive)years,thetransferpricecanbedeterminedbasedonitsoriginalinvestmentamount.Article25Noassurancesshallbegiventoothercontributingpartiesthattheprincipaloftheindustrialinvestmentfundwillnotincurlosses,andnominimumreturnpromisesshallbemade,exceptasotherwiseprovidedbythestate.Article26Afterthetermination(includingdissolutionandbankruptcy)ofthelimitedpartnershipenterprise,theentrustedmanagementinstitutionshallorganizeliquidationinaccordancewithrelevantlawsandregulations.Aftersettlingtheclaimsofcreditors,theremainingpropertyshallbedistributedontheprincipleofequalrightsforequalshares.TheentrustedmanagementinstitutionshallreporttheliquidationsituationtotheDistrictScience,Technology,Industry,andInformationTechnologyBureau.Chapter8Oversight,Inspection,andReportingFrameworkArticle27Theindustrialinvestmentfundwillundergoperformanceevaluationsbythedistrictfinancebureauandbesubjecttothesupervisionoffundoperationsbythedistrictauditbureau.Article28Within20workingdaysofcompletingeachproject'sinvestmentorexit,theentrustedmanagementinstitutionmustsubmitawrittenreporttotheDistrictScience,Technology,Industry,andInformationTechnologyBureauandthedistrictfinancebureau.Article29Theentrustmentmanagementagreementshouldoutlinetheestablishmentofaregularreportingsystem.Within15daysaftertheendofeachquarter,theentrustedmanagementinstitutionisobligatedtosubmitawrittenreporttotheDistrictScience,Technology,Industry,andInformationTechnologyBureauandthedistrictfinancebureau.Thisreportshouldcoverthefund'soperationalstatus,balancesheet,investmentgainsandlosses,andothersignificantmattersthatmayimpactinvestorrights.Reportsshouldincludebalancesheets,incomestatements,cashflowstatements,financialfunddepositstatements,fundprojectstatements,andotherrelevantstatements.Article30Thedistrictfinancebureau,followingthe“FinancialGeneralAccountingSystem”(CK[2022]No.41)andthe“InterimMeasuresfortheAdministrationofGovernmentInvestmentFunds”(CY[2015]No.210),amongotherrelevantdocuments,willdocumenttheassetsandequityformedbythegovernment'sinvestedportionintheindustrialinvestmentfund.Article31Theentrustmentmanagementagreementshouldspecifythatintheeventofsignificantissuessuchasillegalactivities,violationsofregulations,orthepossibilityofsignificantlossesininvestmentprojectexitsduringfundoperations,theentrustedmanagementinstitutionmustsubmitawrittenreporttotheDistrictScience,Technology,Industry,andInformationTechnologyBureauandthedistrictfinancebureauwithin5workingdaysofdiscovery.Article32Ifissuesorrisksofderelictionofdutyarediscoveredwithintheentrustedmanagementinstitution,theDistrictScience,Technology,Industry,andInformationTechnologyBureaumayprovidewrittenorverbalcorrectiveopinions.Ifitisdeterminedtobeillegalornegligentbehavior,theentrustedmanagementinstitutionislegallyresponsibleforthecorrespondinglossesincurred.Forinvestmentsmadeinaccordancewiththelawandregulationsanddecisionsmadethroughtheprescribedprocedures,theentrustedmanagementinstitutionwillnotbepursuedforresponsibilitiesforlossesduetoforcemajeure,policychanges,orotheruncontrollablefactors.Article33Establishaperformanceassessmentmechanismforthemanagementandoperationoffundinvestmentfunds.Theassessment,basedonoverallefficiency,comprehensivelyevaluatesthepolicyobjectivesandeffectsoftheindustrialinvestmentfundwithoutimposingrigidassessmentsonindividualeconomicindicatorssuchastheprofitorlossofasingleinvestmentproject.Theassessmentresultsarelinkedtothemanagementfeeratethattheentrustedmanagementinstitutioncanextractforthecurrentyear.Chapter9AdditionalProvisionsArticle34MattersnotcoveredbythesemeasuresshallbesubjecttotherelevantregulationsoftheGuangzhouMunicipalGovernment'sinvestmentfundmanagementsystem.Article35ThesemeasuresshallbeinterpretedbytheDistrictScience,Technology,Industry,andInformationTechnologyBureauandshallbeimplementedfromthedateofpublication,withavalidityperiodof5years.MethodofPublicDisclosure:ActiveDisclosure。