The equity investment business refers to the investment banking business provided by the Bank with the aim to support China’s economic development, promote international economic cooperation and accelerate the transformation and upgrading of relevant domestic industries. The Bank is responsible for establishing, participating in and managing domestic and overseas equity investment funds (companies) and fund management agencies. It is also responsible for or participates in risk management and control, performance evaluation and operational management of the invested institutions.
The Bank’s equity investment business shall include but not limited to the following:
1. Initiating or participating in the establishment of equity investment funds or credit guarantee companies independently or in cooperation with external investors.
2. Conducting data collection, selection and approval of investment projects, conducting due diligence and issuing reports.
3. Making performance evaluation and operational management of the invested institutions, and providing guidance on operations.
4. Submitting investment project management report and reporting any major event or contingencies in relation to the project in a timely fashion.
5. Taking charge of the post-investment management to closely follow the operations and financial valuation of the invested institutions, participating in the meetings of Shareholders, Partners, Board of Directors, Board of Supervisors, Investment Decision-making Committee, Advisory Committee and Joint Administrative Committee of the invested institutions as representative of investment organizations, exercising its voting power and signing relevant documents such as meeting resolutions and minutes.
6. Formulating exit plans and supervising the exit process.
7. Appointing middle-senior management of the invested institutions in accordance with investment agreements.
8. Taking care of the registration, establishment and annual inspection of overseas platform companies invested by the Bank.
9. Dealing with matters related to external investors and coordinating cooperation between external investment institutions and the Bank in other business sectors apart from equity investment.
10. Making studies on the development of equity investment-related industries and markets both at home and abroad, as well as China’s industrial policies and overseas investment policies on equity investment business.