At the Industry Service Forum of Asset Management Association of Shanghai on September 24, 2022, the Shanghai Equity Exchange (SEE) and Shanghai Sci-tech Capital (SSC) signed a memorandum of cooperation on jointly setting up the Shanghai Secondary Fund Alliance (SSFA). Guan Xiaojun, Deputy Director General of the Shanghai Municipal Financial Regulatory Bureau (SMFRB), inaugurated the alliance.

The founding members of SSFA from more than 80 tier-1 market institutions, including state-level FoFs, renowned domestic and overseas market-oriented FoFs, local guidance funds, financial institutions such as insurance companies, securities brokers and banks, local state-owned enterprises and industrial groups, will make positive contributions to the construction of Shanghai's PE/VC secondary share market and help build Shanghai into an international financial center and a global asset management center.

At the recent Inaugural Conference of Asset Management Association of Shanghai & Launch Ceremony of PE/VC Share Pilot Transfer, Shanghai PE/VC Share Transfer Platform ("Fund Share Transfer Platform"), which has been in trial operation for nine months, was announced to go into pilot operation. Meanwhile, SMFRB, the Shanghai Office of China Securities Regulatory Commission, the Shanghai Municipal State-owned Assets Supervision and Administration Commission, the Shanghai Administration for Market Regulation, the Shanghai Municipal Finance Bureau, and Shanghai Municipal Tax Service, State Taxation Administration jointly released the Opinions on Supporting the Shanghai Equity Exchange in Carrying out the Pilot Transfer of Private Equity and Venture Capital Shares, expressly supporting the pilot transfer of state fund shares via SEE, and supporting SEE in carrying out business such as trusteeship and pledge registration of limited partnerships' property in accordance with laws and regulations. Henceforth, Shanghai has secured its lead from the establishment of Fund Share Transfer Platform, to legal protection, policy support and the promotion of share transfer of state-owned funds. The establishment of SSFA will pool resources, wisdom and strengths from the perspectives of market and industry to accelerate the construction of a sound PE fund share transfer ecosystem.

As a financial factor market and the initiator of SSFA, SEE has served a total of 11,311 various small and medium-sized enterprises via five boards and five platforms, achieving a total financing amount of 280.177 billion yuan. Fund Share Transfer Platform has completed 15 transactions with a total amount of more than 1.2 billion yuan, accumulating practical experience in the institutional construction of share transfer, information system empowerment and the agglomeration of transaction elements. The co-initiator SSC is a market-oriented FoF initiated by SIG. With the mission of serving the building of Shanghai Sci-tech Innovation Center, SSC has a target scale of 30 billion yuan and now has over 12 billion yuan under management. SSC has invested in more than 60 sub-funds, with a total contract amount of over 180 billion yuan, covering over 1,800 enterprises. Among the invested enterprises, 80 are listed enterprises, including 48 listed on the Science and Technology Innovation Board.

On the basis of full exchange and consensus, SSFA will pool strengths from various sides, to cultivate more professional and qualified market participants through industrial exchanges and interactions; will play its role as a think tank, provide professional advice on policies, laws and practices to address the pains of the secondary fund market, and offer professional support for the standardization of the industry; and will step up prospective exploration, strengthen connections with regulators, government departments and market institutions, explore paths and accumulate experience for product and service innovations in the secondary fund field. Also, it will coordinate with Fund Share Transfer Platform, to build a bridge of communication and cooperation linking renowned domestic traders and intermediaries for secondary fund transfer, to jointly promote the orderly development of Shanghai's PE secondary share market, and help Shanghai first develop into a highland for secondary fund development in China.