On April 13, 2017, Mr. Ding Wei, CEO of CICC Capital Management Co., Ltd. (“CCM”) and chairman of CICC Genesis Fund, gave a lecture honorably on a seminar held at the Chinese Academy of Governance which only top Chinese governors were invited. He shared his past experience and future outlook on how to better promote mass entrepreneurship and innovation by utilizing financial approaches.

Mass entrepreneurship and innovation is not only a popular concept constantly stressed by the government these years, but also a vital path to successful transformation and upgrading of Chinese economy, Mr. Ding said. The policy, as a move in economic field, aims to help generate further economic growth and fair job opportunities by using modern approach. Innovation leads to potential for future economic growth, while mass entrepreneurship boosts job opportunities and balances their distribution.

Data show that emerging innovation-driven industries in China kept an annual growth rate of over 20% in recent years, driving the overall economy growing steadily. Globally speaking, more than 80% of the total employment is supported by small and medium enterprises, which have all gone through the start-up period. Compared to macroeconomic policies that lean on the need-driven nature, mass entrepreneurship and innovation is better defined and core to achieve our long-term economic goals.

Mr. Ding also shared CICC’s attempts to promote mass entrepreneurship and innovation by leveraging finance. Backed by its extraordinary fundraising capabilities, CCM’s core private equity business AUM now stands at RMB 120 billion and is very likely to exceed RMB 200 billion in the near future. It is worth highlighting that CICC Genesis Fund (the “Fund”) was established under the guidance of the National Development and Reform Commission and the Ministry of Finance in 2016. The fund is capped at RMB 40 billion and focused on investing in the emerging industries. Impact-wise, this fund-of-funds seeks to take a share in hundreds of PE and VC funds in order to tap wide industry resources and finally help pushing the growth frontier of the emerging industries.

The fund adopted market-oriented operation approach through investing in leading funds with proven track record or promising background. Through systematic business planning, CCM also hopes to help stimulate the development of the emerging industries in China as well as promote mass entrepreneurship and innovation by providing financial support.

CCM, the domestic platform for CICC private fund investment business, is a first-tier wholly-owned subsidiary of CICC.