Jiangsu provincial state-owned enterprises deploy patient capital to advance hard technology industrialisation

According to the Jiangsu Provincial State-owned Assets Supervision and Administration Commission on 20 October, provincial state-owned enterprises are channelling long-term capital into projects built around core technologies to support the commercial roll-out of hard technology.

The Jiangsu Equity Expansion and New Strategic Industries Fund, managed by Jiangsu High-Tech Investment Group, holds capital of 10 billion yuan. It sealed its first investment in Changzhou Tianmu XianDao in June, led the Series C financing of Nanjing Qingpu Biotech in late July and backed the Series A round for Suzhou Dongbao Haixing in August. Established in May, the fund completed three investments within three months across advanced new energy materials, innovative pharmaceuticals and lightweight high-end automotive manufacturing.

Seven provincial state-owned enterprises including Jiangsu High-Tech Investment Group have set up eight dedicated industrial funds with combined capital of 21.5 billion yuan, forming a core component of Jiangsu’s cluster of new strategic industry funds.

Jiangsu has prioritised artificial intelligence under its “AI Plus” initiative. The Jiangsu Artificial Intelligence Industry Alliance was formed at the end of July. More than 1,500 artificial intelligence enterprises operate in the province, with core sector revenue reaching 243.1 billion yuan in the first half of this year, an increase of 17 per cent year on year. Suhao Holding Group and Jiangsu Provincial Data Group have launched two specialised funds for this sector. The Jiangsu Provincial Data Industry Fund, worth 1.5 billion yuan, is among the province’s first vehicles focused on data factors and artificial intelligence and has backed firms including Nanjing Tianji Yida, Xinghaitu (Beijing) and Zibianliang Robot (Shenzhen). Suhao Holding Group’s one-billion-yuan Artificial Intelligence Application Innovation Fund supports industrial AI applications and has invested in Zhongke Fangcun Zhiwei (Nanjing).

A manufacturing subsidiary of Suhao Holding Group, General Tire, has partnered with the Nanjing Institute of Artificial Intelligence, Chinese Academy of Sciences and Zhongke Fangcun Zhiwei (Nanjing) to open a General Artificial Intelligence Application and Innovation Laboratory at the end of June. The laboratory carries out joint research on large language models for the tyre sector and edge intelligence. The investment opens a new industrial track while upgrading traditional manufacturing operations.

Suhao Holding Group has also established the Jiangsu Suhao Modern Service Industry Innovation and Development Fund, with a target size of 10 billion yuan and an initial tranche of two billion yuan. The fund targets digital commerce, smart supply chains and digital transformation in services to drive integrated, digital and low-carbon growth in modern services.

Funds run by Jiangsu Provincial Environmental Protection Group, Jiangsu Coastal Development Group and Jiangsu Guoxin Group cover green development, the marine economy and new energy under the provincial “51010” new strategic industry cluster framework. The 3-billion-yuan Jiangsu Energy Conservation and Environmental Protection New Strategic Industry Fund has backed projects including Zhongzi Huan Xinyuan urban renewal and Winsun Energy Saving. The two-billion-yuan Jiangsu Marine Economy Equity Investment Fund, the province’s first government fund dedicated to marine sectors, has invested in Jiangsu Xiangyun Titanium Alloy New Materials, Jiangsu Hydroacoustic Technology and Zhejiang Zhenye New Materials. Jiangsu Hydroacoustic Technology develops deep-water hydrophones and high-frequency transducers for sonar, underwater communication and marine environmental monitoring. The one-billion-yuan Jiangsu New Energy (Guoxin) Industrial Special Fund focuses on wind power, hydrogen energy, advanced energy storage and smart grids, with more than 20 priority projects in its pipeline.

Jiangsu State Farms Group has launched the Jiangsu State Farms Modern Biotechnology Industry Investment Fund, with an initial size of one billion yuan. It targets molecular breeding, synthetic biology, innovative medicines and cell and gene therapy. The fund joined the Jiangsu Equity Expansion and New Strategic Industries Fund to complete the first biotech investment in Nanjing Qingpu Biotech’s Series C round.

The pool of patient capital continues to expand beyond the 21.5-billion-yuan provincial state-owned fund portfolio. The first investment of the Chengtong Science and Innovation Fund has closed in Xuzhou Beikuang Zihuan, while the first sub-fund under the Yangtze River Delta Venture Capital Guidance Fund has settled in Nanjing. Capital from central state-owned enterprises and national funds is gathering in the province.