Guangzhou State-owned Capital Investment Corporation's Guangzhou Fund Ordered to Correct Violations, Private Fund Business Involves Multiple Compliance Breaches

The China Securities Regulatory Commission Guangdong Regulatory Bureau recently issued administrative regulatory measures against Guangzhou Industrial Investment Fund Management Co., Ltd. (referred to as “Guangzhou Fund”), requiring corrective actions. An investigation found that Guangzhou Fund engaged in multiple violations during its private equity fund operations. Public information shows that Guangzhou Fund is a subsidiary of Guangzhou Urban Investment and has primarily focused on equity investments, attracting investments, and nurturing companies for IPOs in strategic emerging industries and future industries, managing a total fund scale of over 110 billion yuan.

Illicit activities such as indirect guarantee business by a holding guarantee company

The decision document from the Guangdong Regulatory Bureau states that during private fund operations, several violations occurred. First, the company engaged in guarantee activities indirectly through Guangzhou Kefeng Langrun Financing Guarantee Co., Ltd., by controlling, appointing directors, and making major decisions. This behavior violates the “Interim Measures for the Supervision and Administration of Private Investment Funds” (hereinafter referred to as the “Private Fund Measures”) and related regulations on strengthening private fund supervision.

Second, the company failed to disclose the 2024 annual report and semi-annual report of Guangzhou Huiyin New Energy Equity Investment Partnership (Limited Partnership) to investors. This conduct violates Article 24 of the Private Fund Measures. Third, the company’s actual controller, changes to registered capital and paid-in capital, and other major matters were not promptly reported to the Asset Management Association of China, violating Article 25, Paragraph 1 of the Private Fund Measures.

Guangzhou Fund’s official website shows that its business scope covers government fund management, private equity (PE), venture capital (VC), and other financial platforms, including angel investment, VC investment, pre-IPO, PIPE, M&A funds, urban development funds, government funds, public funds, fixed income, and more.

Its secondary subsidiaries mainly include Guangzhou Science and Technology Financial Innovation Investment Holding Co., Ltd. (“Kejin Holding”), Guangzhou Urban Development Investment Fund Management Co., Ltd. (“Chengfa Fund”), Guangzhou Emerging Industry Development Fund Management Co., Ltd. (“Emerging Fund”), Guangzhou Industrial Finance Investment Fund Management Co., Ltd. (“Chanyin Fund”), Guangzhou Huiyin Tianyue Equity Investment Management Co., Ltd. (“Huiyin Tianyue”), and Guangzhou Fund International Equity Investment Fund Management Co., Ltd. (“Guangzhou Fund International”).

According to Tianyancha, the first item mentioned in the Guangdong Regulatory Bureau’s decision letter is Guangzhou Kefeng Langrun Financing Guarantee Co., Ltd., established in November 2015 with a registered capital of 100 million yuan. Its equity structure shows Guangzhou Fund directly owns 51%, while its wholly owned subsidiary Guangzhou Chanyin Assets Investment Co., Ltd., holds 49%. Tianyancha indicates that the current legal representative of Guangzhou Kefeng Langrun Financing Guarantee is Wang Kuan, who previously served as legal representative of Guangzhou Urban Investment’s Guangzhou Urban Investment Asset Management Co., Ltd.

A trillion-level local urban investment platform, promoted 9 companies to IPO last year

Public information shows that Guangzhou Fund was established on March 28, 2013, and officially began operations in May 2013. It was set up by the Guangzhou Municipal Party Committee and Municipal Government to promote industrial transformation and upgrading, amplify fiscal funds’ guiding role, drive social investment, and strengthen the regional financial center. In July 2018, Guangzhou Fund merged with Guangzhou Urban Construction Investment Group Co., Ltd., becoming its subsidiary.

Data disclosed by Guangzhou Fund in January this year shows that the company currently manages over 110 billion yuan in funds, has invested in more than 1,000 real economy enterprises, and has helped 120 companies go public.

On January 29, 2026, the China Venture Capital Research Institute released its annual Golden Investment Awards ranking, naming Guangzhou Fund as one of the “Top 50 Influential PE Investment Institutions in China for 2025,” with its subsidiary Kejin Holding recognized as one of the “Top 30 Most LP-Favored VC Investment Institutions in China for 2025.”

In 2025, Guangzhou Fund invested in several high-quality projects in emerging industries, including leading regenerative medicine company Rui Zhen Rejuvenation and the Greater Bay Area’s first wafer-level advanced packaging enterprise Yuehai Integration; facilitated investment projects such as Huaxing Optoelectronics T8 and ChipX; promoted nine companies including Ruili Kemi, Changfeng Pharmaceutical, Nanjing Digital, and Bibert to IPO; 14 invested companies were listed among the 2025 global unicorns; three companies including Suting Juchuang were among the top 100 humanoid robots worldwide; six companies such as Guodun Quantum were recognized as exemplary cases of future industry innovation by the Ministry of Industry and Information Technology; and seven companies including Nanjing Digital Research Institute were listed on Guangzhou Artificial Intelligence Application Pioneer List.

Kejin Holding is a professional equity investment management firm under Guangzhou Fund, managing over 25 billion yuan, with more than 200 direct investment projects, 85% of which are in Guangzhou. It has successfully helped 53 companies go public, with recent investments including Metro Design Institute, Deepwater Haina, Pingo Software, Jinlu Electronics, Heyuan Biological, Andao Pharmaceuticals, Ruifeng Biological, Zhongsheng Traceability, Hongji Chuangneng, and Hive Energy.