GTHT (02611.HK) to set up RMB20 billion sci-tech fund, subscribing RMB4 billion for a 20% interest

NewTimeSpace News: On 28 October, Guotai Haitong Securities Co., Ltd. (02611.HK; 601211.SH) announced that its wholly-owned subsidiary Guotai Haitong Kaiyuan has been approved to enter into a partnership agreement in due course to establish Shanghai Linghang Sci-Tech Fund Partnership (Limited Partnership) (proposed name). The fund has been planned since March 2026 as ordinary business, aiming to leverage long-term and patient capital in serving national strategy and supporting high-level scientific and technological self-reliance. As at the date of the announcement, the partnership agreement had not been signed, and the company plans to sign it in the near term.

Under the proposed terms, Guotai Haitong Kaiyuan acts as fund manager and general partner, ICBC Capital as general partner and Shanghai International Group Asset Management as limited partner, alongside other investors. Total subscribed capital is expected to be RMB20 billion, with the four subscribing RMB4 billion, RMB10 million, RMB2 billion and RMB13.99 billion respectively, representing 20.00%, 0.05%, 10.00% and 69.95%. The fund will invest only in underlying funds approved by the partners' meeting, targeting next-generation information technology, high-end equipment, new materials, biomedicine, artificial intelligence and the digital economy. The investment period is five years and the exit period runs to the seventh anniversary, each extendable up to three times by no more than one year; no management fee is charged at fund level, with fees taken at the underlying fund level.

Shanghai International Group Asset Management is wholly owned by Shanghai International Group, which directly and indirectly holds about 20.46% of the company and is a substantial shareholder, making the transaction a connected transaction. Aggregated with three similar past transactions, the applicable percentage ratios exceed 0.1% but are below 5%, so reporting, announcement and annual review requirements apply, while circular and independent shareholders' approval are waived. Zhou Jie, Guan Wei, Zhong Maojun, Chen Hangbiao and Lv Chunfang abstained from voting on the relevant board resolution given their directorships or other positions at Shanghai International Group and/or its associates.