Port communicationGuotai Junan plans to establish a 50 billion fund of funds! Colleagues said it was “too sudden” in the cold winter of fundraising，The transformation of securities firms’ equity investment business has made great progress。According to brokerage China reports，Guotai Junan Innovation Investment, a wholly-owned private equity subsidiary of Guotai Junan Securities, was recently launched with a scale of 50 billion yuan.，Raised 10 billion yuan in the first phase，Plans to invest 40% in internal sub-funds、40%Invest in external sub-funds、20%direct investment。
This is also the first time that a private equity subsidiary of a securities firm has initiated the establishment of a market-oriented fund of funds.。 "This news is a bit sudden.，Unexpectedly, a leading securities firm like Guotai Junan has already achieved such success in equity investment.。"An investor from the alternative investment subsidiary of a small brokerage said with emotion.。500Billion fund of funds business scale，A heavy bomb dropped in the securities company。 In fact，More private equity fund businesses of securities firms are still undergoing rectification.。
From 2025，The term "brokerage direct investment subsidiary" has become a thing of the past，Replaced by "alternative investment subsidiaries" and "private investment fund subsidiaries"。Regulatory regulations set December 30, 2025 as the final rectification deadline for securities companies，Now half a year has passed，The investment community learned (ID：pedail2012），Many securities firms are still busy sorting out their equity investment business，The pace of investment has also slowed down。
The private equity subsidiary of the brokerage firm also operates a fund of funds! Guotai Junan Innovation Investment launched the establishment of a RMB 50 billion fund of funds and began pilot equity investment business in 2007，Domestic securities firms focusing on seller services in the secondary market are becoming more and more professional in cross-border investments in the primary market。Guotai Junan Innovation Investment was established in 2009，The initial registered capital is 500 million yuan，The parent company is Guotai Junan Securities, a leading domestic securities firm.。
Backed by the strong resources of securities firms
Advantages
，In recent years, Guotai Junan’s innovative investments have grown rapidly.，Now another big step has been taken in the field of private equity investment。It is understood，LP of Guotai Junan Fund of Funds(limited partner)Divided into two parts: cornerstone LP and industrial LP。
in，Cornerstone LP’s investment accounted for 80%，By Guotai Junan Securities、financial institution、Composition of central enterprises and local state-owned assets platforms；Industrial LP investment accounts for 20%，From five major industrial leading companies、Corporate customer structure。
How the fund operates，This fund of funds adopts a market-oriented resource allocation method，Simultaneously carry out embedded income for the internal and external sub-funds invested(IRR)Assessment，Implement horse racing competition mechanism in two dimensions between external sub-funds and internal sub-funds，To determine the allocation ratio of funds between internal and external sub-funds。at the same time，To attract outstanding external sub-funds，The parent foundation introduces industrial resources、Investment banking resources and other resources empower sub-funds。
According to the investment community，Guotai Junan Securities’ innovative investment will focus on “advanced equipment manufacturing、new generation information technology、medical health、Environmentally friendly new energy、Focus on the layout of the five major industrial areas of "Consumption and Modern Service Industry"。The fund of funds established this time will also analyze the ecology of various industries from top to bottom.，A balanced allocation of the above five major industries。
Fund of funds is only part of the diversified private equity investment fund system that Guotai Junan Securities wants to build.，This system also includes entrepreneurial funds、growth fund、New and Old Momentum Conversion Fund、Buyout Fund、Pre-IPO、PIPE etc.。
Guotai Junan has set three orders of magnitude goals for the development of its private equity investment fund system.：First, direct control of private equity investment funds reaching 100 billion yuan；Second, the private equity investment funds indirectly controlled or influenced reached 100 billion yuan.；The third is to participate in industrial investment projects through the above two methods.，The industrial investment scale of influence and alliance reaches one trillion yuan。
“Previously the business of securities firms
Advantages
More is on the seller's side，Including investment banks、research etc.，private equity today、Buy-side businesses such as public funds have also begun to increase，The next question we face is how to make this business bigger and stronger.。"The above-mentioned investor said。
The equity investment scale of securities companies has exceeded 40 billion，300 companies went public in the past 10 years Previously，China's fund of funds has always been guided by the government、Mainly market-oriented funds of funds operated by private capital or funds of funds with state-owned assets background，Entry of brokerage private equity fund subsidiaries，It shows that the equity investment business plays an increasingly important role in the entire securities dealer system.。
2007September，China Securities Regulatory Commission approves CITIC Securities、CICC launches direct equity investment pilot，The two securities firms are allowed to set up subsidiaries with their own funds to carry out equity investment business.。Since then，Direct investment business of securities firms officially opens。 According to incomplete statistics，By the end of 2025，Nearly 70 securities firms have been approved and established direct investment companies，Registered capital exceeds 70 billion yuan，The total scale of funds under management exceeds 400 billion yuan。
past 10 years，The cumulative number of investment companies in the securities firm’s PE business exceeded 2,000，More than 300 invested companies have passed IPO、Listed on the Shanghai and Shenzhen Stock Exchanges through backdoor or restructuring methods。 In the list of companies invested by securities firms，There are some unicorns。For example, Didi Chuxing、Meituan Dianping、Huayun Data、Meizu Technology、Hujiang Education、Ant Financial、DJI Technology、Bona Pictures、SenseTime、WiFi master key, etc.。
Competition in the domestic equity investment market is becoming increasingly fierce，However, securities firms also have some unique features in the field of equity investment.
Advantages
。Zhang Hao, general manager of Caitong Innovation Investment, said：“The sources of funds used by alternative subsidiaries of securities companies for equity investments are relatively clear.，Strong brand effect，Companies often do not need to do too many background checks when cooperating with direct investment brokers.，Endorsed by a securities institution，Have strong credibility。
The investment performance of some brokerage direct investment institutions is no less than that of professional equity investment institutions.，Some institutions appear on Zero2IPO’s list，The following are Zero2IPO’s top 10 direct investment companies in China in 2025： 80%Need to raise funds from outside，Transformation is not easy，The rectification is not over yet. Two Heavens of Ice and Fire，Different from the major strides taken by leading securities firms in business transformation，Some small and medium-sized securities firms are facing difficulties in transformation，The roots of this transformation can be traced back to two new regulatory regulations issued two years ago.。
2025December 30，"Management Standards for Private Equity Fund Subsidiaries of Securities Companies" and "Management Standards for Alternative Investment Subsidiaries of Securities Companies" issued by the Securities Association of China。This is since the 2014 revision of the old version of the "Specifications for Direct Investment Business of Securities Companies"，The most important document released in the field of direct investment by securities firms。 According to the new regulations，The direct investment subsidiary of a brokerage firm will be transformed into a private equity fund subsidiary of a brokerage firm or an alternative investment subsidiary of a brokerage firm.。
The final rectification deadline given at that time was one year.。The new regulations pose a big problem for securities firms，that is
Require
Brokerage private equity fund subsidiary，The proportion of own funds invested in a single fund shall not exceed 20%，The other 80% needs to raise funds from outside。 This rectification is a very complex project，Especially when it comes to the issue of adjusting the shareholding ratio of existing funds.。
“For example, those who have signed a fund partner agreement，The investment ratio is controlled at 20%，The original LP may not accept it.。"An internal investor at a securities firm said。 What's more important is，Previously, most securities firms invested with their own funds.，Limited fundraising ability，80%The rigid regulations on external funds have put forward higher requirements for securities firms’ ability to raise funds through direct investment.
Require
。
Affected by new regulations，Some brokerage direct investment companies will slow down foreign investment from 2025，Conduct compliance self-examination。“Some of them have been rectified so far.，Some are still being rectified.”，According to internal investors of the above-mentioned securities firms,。
It is reported that，Relevant subsidiaries of Caitong Securities have completed rectification，Two parallel subsidiaries, Caitong Innovation and Caitong Capital, are responsible for the equity investment business.，Caitong Innovation, as an alternative investment subsidiary, conducts direct investment with its own funds.，Caitong Capital, as a private equity fund subsidiary, participates in equity investment through managed funds.。 Securities firms still face greater pressure on compliance and rectification。
at present，The Securities Association of China has announced 10 batches of private equity fund subsidiaries and alternative investment subsidiaries of 79 securities companies.，And 8 batches of regulatory platforms for private equity fund subsidiaries of securities companies in total 158。 According to media reports，Recently, the rectification work of securities companies’ subsidiaries has been further detailed. 。The regulatory authorities issued the "Notice on Effectively Implementing the Standardization and Rectification Work of Subsidiaries" (hereinafter referred to as the "Notice") to various securities companies.。
notify
Require
All securities companies have done a good job in standardizing and rectifying their organizational structure.，According to actual needs of business development，careful、Establish subsidiaries in an orderly manner to manage private equity funds、Alternative investment and other businesses。
The notice stated，In principle, securities companies are not allowed to establish more than 2 (inclusive) alternative subsidiaries.；The time interval between the establishment of new private equity subsidiaries and alternative subsidiaries should not be less than 1 year；Securities companies that establish two or more private equity subsidiaries，The company’s existing business operations and management must be in good condition，It has been no less than 1 year since the last private equity subsidiary was established，And the company has not been punished for major violations of laws and regulations in the past two years.，No major regulatory measures have been taken in the past year, etc.。
Primary market prices are rising，Direct investment by securities firms has slowed down investment since 2025，Equity investment in primary market cools down。For the private equity fund subsidiaries of securities firms that are undergoing transformation，Difficulties in raising funds are tantamount to "adding fuel to the fire"。 Alternative investment subsidiaries of securities companies that invest with their own funds cannot escape the disaster.。“Subject to market influence and regulatory adjustments，Our overall investment pace has tightened。
The big plan is to look at more projects，Invest prudently，Waiting for a correction in primary market prices next year。"An investor in the alternative investment subsidiary of the above-mentioned securities firm said。 The direction of PE investment by domestic securities firms is changing。In the past, the operating model of “sponsorship + direct investment” has been explicitly prohibited.，The unique way to earn the price difference between primary and secondary markets through Pre-IPO investment
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cease to exist。
It is understood，supervision
Require
，Provide IPO guidance for companies planning to be listed、financial advisor、Sponsor、The lead underwriter or the sponsoring securities firm that is responsible for the listing and public transfer of stocks.，After signing relevant agreements or substantively carrying out relevant business，Its private equity subsidiaries and affiliated private equity funds are not allowed to invest in the listed company.。
also，Different from general market-oriented PE，Under the dual regulatory system of the China Securities Regulatory Commission and the Asset Management Association，The regulatory costs and regulatory pressure of securities firms’ PEs are greater，Greater risk aversion，This determines that its investment scope is greatly limited.。 The industry generally believes that，A new round of industry reshuffle is approaching。
How to remain invincible in the current complex environment，Zhang Xiangyang, Chairman of Haitong Kaiyuan Investment Co., Ltd. said，Securities company-based PE should give full play to securities company-based PE
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，Improve and perfect the market-oriented incentive mechanism，At the same time, vigorously develop M&A investment business。 Zhang Xiangyang is very optimistic about the market opportunities in the M&A investment business。
he thinks：“M&A investment represents the future development direction of equity investment，Background platform for investment institutions、Financial strength and professional capabilities, etc.
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higher，And this is exactly what securities firms do as PE.
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location。Faced with the vast space for mergers, acquisitions and reorganization of existing market companies in the future，PEs from securities firms can promote the reorganization of corporate equity structures through mergers and acquisitions investments.，Straightening out corporate control，Realize the reconstruction of organizational management system。
” Judging from the development of direct investment business of overseas securities firms，Direct investment by securities firms is an important source of income for international securities firms，Overall revenue accounts for approximately 60% of the entire brokerage revenue，Especially the United States, which has a relatively developed capital market，Its revenue proportion can be as high as about 70%，Return on investment can be as high as 10 times。Outside of traditional brokerage，Domestic securities firms have great potential in the field of equity investment。
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