On May 11, at the press conference on "Shenyang Promotes the High-Quality Development of the Investment Fund Sector", which was held by the Information Office of Shenyang Municipal People’s Government, Liu Yaoguo, level-I research consultant of the Shenyang Municipal Development and Reform Commission, gave a briefing on the compilation of development index of the private equity investment sector in Shenyang (hereinafter referred to as the “Shenyang PE”), etc.
There Are 55 Private Equity Fund Managers in Shenyang
Liu Yaoguo introduced that as of the first quarter of 2022, as classified based on the place of registration, Shenyang successfully registered a total of 55 private equity fund managers with the Asset Management Association of China (AMAC); 113 funds under management were filed with the AMAC, and the asset under management (AUM) reached CNY 6.733 billion (point-in-time data). Among them, there were 39 private equity and venture capital fund managers, accounting for 65%, and 16 private securities investment fund managers, accounting for 35%.
Shenyang PE Index Fills the Gap in the Sector
Liu Yaoguo introduced the following contents: Shenyang PE Index is the digital business card of Shenyang's equity investment sector. To compile the Shenyang PE Index is to comprehensively synthesize the development status of Shenyang's private equity investment sector, objectively reflect the market capacity and degree of competition, and summarize and analyze the laws and characteristics of development stages in the sector and the processes of key issues. It is conducive to establishing and improving Shenyang’s equity investment management mechanisms, strengthening equity investment risk management, helping relevant entities make investment decisions, and filling the gaps in Shenyang’s corresponding indicator data. It is conducive to attracting excellent social investment teams and emerging strategic inside and outside Shenyang to settle down in Shenyang, thus increasing the proportion of Shenyang’s direct financing, optimizing the capital market investment structure, and promoting the development of the real economy. It is conducive to scientifically formulating capital market incentive policies, and further improving such policies as setting up industrial guidance equity investment funds, expanding access to institutional investors and guiding through government investment by predicting the development trend of the sector and combining with industrial development positioning.
Shenyang PE Index Will be Compiled in 2022
Liu Yaoguo mainly introduced the compilation status of Shenyang PE Index and the schedule for completing the compilation. The frequency of compiling and releasing Shenyang PE Index is once a year, with 2017 as the base period, and the base period value is standardized to 100. The composite index method is used for calculation. In other words, the weighted comprehensive average is calculated by using the variation range of multiple indicators as the weight. The higher the growth rate is, the more active the private equity investment sector is.
Liu Yaoguo pointed out that Shenyang PE Index includes three levels of indicators. The PE index itself is a level-I indicator, under which there are two types of level-II indicators: current composite index and expected composite index. According to the relative importance of the indicators, it is proposed to set the weight that the current indicator accounts for 70% and the expected indicator accounts for 30%. There are different level III indicators under two types of level-II indicators respectively. In other words, under the current composite index, there are such level-III indicators as the annual total amount of capital raised, annual total amount of investment, and annual total amount of capital exited; under the expected composite index, there are such level-III indicators as the overall evaluation of the sector, development expectation of its own business, expectation of capital raising, and investment in environmental, social and governance (ESG) performance. Through the screening and compilation from such four aspects as "capital-raising, investment, management, and exit" of the samples, the index coefficients are evaluated from both qualitative and quantitative perspectives.
Liu Yaoguo introduced the schedule for compiling Shenyang PE Index. Up to now, the construction of the framework of the three levels of indicators for Shenyang PE Index has been completed. It is expected to complete all data calculation work by mid-August 2022. Shenyang PE Index and related work briefings will be released at the Global PE Shenyang Forum, which will be held at the end of September. The 2021 Annual Report on the Equity Investment Sector in Shenyang will be completed by the end of 2022.
(Liu Guodong)