Dentons advises Caixin Financial and China Everbright Limited on jointly setting up RMB5.1 billion FOF

Recently, a Dentons Changsha team advised Caixin Financial in connection with setting up a RMB5.1 Billion FOF – Hunan GuangKong FOF – in cooperation with China Everbright Limited (stock name: China Everbright, stock code: 165.HK). Caixin Financial invested RMB2.5 billion on behalf of Hunan Province Emerging Industry Guide Fund ("HPEIGF"), and China Everbright contributed RMB2.5 billion through one of its subsidiary as a limited partner and also invested another RMB100 million as a general partner.

The establishment and fund manager recruitment of HPEIGF was advised by a team consisting of partners Huang Chun'an and Ning Huabo, and paralegals Zhang Ting and Chen Xiaoru. As the legal counsel of this deal, the team provided a full scope legal assistance, including designing and participating in the discussion and demonstration of the fund structure, carrying out due diligence on the fund manager and the fund, drafting and reviewing the FOF sponsor agreement, partnership agreement and other fund formation documents, and participating in the negotiations.

As the entrusted manager of HPEIGF, Caixin Financial manages RMB20 billion funds for HPEIGF. Caixin has 37 wholly-owned or controlled subsidiaries (sub-subsidiaries), 13 financial licenses covering trust, securities, life insurance, banking, asset management, fund, united assets exchange, equity exchange, financial assets exchange, insurance brakeage, pawn, guarantee and futures. It has a share in one bank and controls two listed companies. The FOF is the first project of HPEIGF, marking the first ever cooperation between government guide fund and cross-border asset management platform. Making full use of China Everbright's experiences in cross-border asset operation and the government guide fund's social influence, the FOF will focus on investment opportunities in emerging industries such as advanced manufacturing, information technology, biomedical and healthcare.