Binhai Fund Town Creates the TEDA Model of Industry-Finance Integration
Decorated by lush greenery, the Haihe River meanders, and the heartland of Binhai City, Yujiapu, is shaped like a purse embraced by the river on three sides. This is where the Binhai Fund Town has taken root. It has become a gathering place for financial enterprises and institutions in Binhai City, attracting billions of funds. These dynamic funds are organically integrated with the thriving industries in the region, promoting TEDA to continuously explore the integration of industry and finance, and paving the way for a high-quality development of “industry + finance”.
Yujiapu is the core area of the China (Tianjin) Pilot Free Trade Zone and the core functional area of the Demonstration Zone for Financial Innovation and Operation. With its tall buildings and beautiful environment, it has attracted a large number of leading financial enterprises and government service institutions in the country. In order to further promote the construction of the Demonstration Zone for Financial Innovation and Operation, and facilitate the aggregation of various funds and the development of innovative formats, in May 2021, Binhai New Area integrated its years of financial resources and established the Binhai Fund Town in Yujiapu, ushering in a new phase of high-quality development of the fund industry in Binhai City. Up to now, Binhai Fund Town has attracted over 200 state-owned enterprises and well-known investment institutions, including CITIC Capital, IDG, Geely Fund, with a total registered capital exceeding 90 billion yuan. It has conducted over 100 comprehensive financial services and served more than 700 companies, becoming one of the most important characteristic fund towns in northern China.
Nowadays, well-known investment institutions and financial experts are flocking to the Binhai Fund Town, and various funds are continuously flowing in. The Binhai Fund Town fully plays the role of a “reservoir”, channeling more and more funds into projects of all sizes. In just the first quarter of this year, Binhai Fund Town has provided point-to-point services to facilitate investment and financing connections for multiple projects, such as Tiandilong Pipe, Lonyu Robotics, and Shanghai Sunshine Pump, with a total investment and financing amount of nearly 300 million yuan.
Upon its establishment, the Binhai Fund Town has positioned five key service features: creating a comprehensive fund ecosystem, providing one-stop intermediary services for all aspects, offering full-process support for IPO incubation, facilitating efficient investment and financing connections, and providing project promotion services. The focus is not only on attracting various types of funds, such as venture capital funds (VC), private equity funds (PE), government-guided funds, and securities investment funds, but also actively introducing relevant financial intermediaries to establish an efficient investment and financing connection mechanism called “fund pool + enterprise pool + institutional expert pool”. Here, investment institutions serve as fund suppliers, presenting clear industry investment directions and project investment preferences. Government departments act as suppliers of project information, screening high-quality projects for investment. Intermediary organizations and experts provide professional and authoritative third-party opinions, assisting enterprises with strategic planning. A comprehensive fund ecosystem is gradually taking shape, where high-quality enterprises converge, continuous project incubation occurs, abundant financial resources are available, and diverse financing methods are provided.
The Tianjin OTC is a senior enterprise in Binhai Fund Town. This regional equity market operating institution, designated by the Tianjin Municipal People’s Government, has established a deep cooperation with TEDA Administrative Commission. From various perspectives, they have opened up financing channels, deepened the exploration and cultivation of listed resources within the area, and strengthened the brand of Binhai Fund Town. The head of the institution stated that they will transform the Binhai Fund Town into the main battlefield for regional equity market system and business innovation pilot, and take the TEDA Listing Preparatory Board as a benchmark for Tianjin, establishing a listing incubation system to alleviate the difficulties in investment and financing docking.
To glimpse a corner is to understand the whole picture. Here, the government provides high-quality and convenient services, while the Binhai Fund Town team is professional and efficient. Enterprises and institutions that settle here can quickly integrate into the industrial circle of Binhai City and achieve development. “By integrating funds into projects, we continuously empower the development of enterprises and real economy. At the same time, the funds achieve appreciation through long-term circulation,” said personnel from TEDA Financial Bureau.
Behind the vibrant development of Binhai Fund Town lies the solid industrial foundation of Binhai New Area, the continuously optimized industrial environment, and the support of innovative initiatives.
Binhai New Area, located along the eastern coast of Tianjin, is the largest high-end manufacturing base in northern China. It boasts four trillion-yuan-level industrial clusters and has established eight national-level demonstration bases for neo-industrialization. The area is home to nearly 8,000 foreign-funded enterprises and over 150,000 domestic-funded enterprises, with a convergence of numerous science and technology innovation projects. TEDA is the only region in Tianjin and one of the few in China with a comprehensive financial license. It gathers over 150 legal entities and their branches, more than 500 supply chain financial enterprises, and over 150 private fund managers registered with the Asset Management Association of China. The financial industry in TEDA has developed with a wide range of categories, comprehensive ecosystems, large scale, and innovative business models, showing a high-quality development pattern. The Tianjin Pilot Free Trade Zone Cross-border Investment and Financing Comprehensive Service Center within TEDA is committed to providing high-level cross-border investment and financing services to enterprises, supporting the replication, promotion, and innovation of policies related to free trade finance on a larger scale, enhancing the level of judicial protection for cross-border investment and financing, and promoting the rapid development of the financial industry in TEDA. This provides a broad market and a favorable industrial environment for the development of the fund industry.
Binhai New Area has introduced a series of innovative measures to strongly support the development of Binhai Fund Town. They have issued a document titled Several Measures to Promote the High-Quality Development of Equity Investment and Support the Construction of Binhai Fund Town. These measures aim to further promote the establishment of a comprehensive service system that integrates capital and industry, accelerating the industry aggregation and service radiation of Binhai Fund Town.
Furthermore, Binhai Fund Town leverages its advantageous resources to accelerate its rise. Earlier this year, Binhai Fund Town established the Secretariat of the Co-creation Council, allowing enterprises to directly participate in the planning and development of the Fund Town. They have launched distinctive brand activities such as talk shows and entrepreneur clubs, providing enterprises with the latest information and in-depth services in investment, operation, and listing. These efforts aim to attract more projects, enhance brand influence of Binhai Fund Town, and promote the economic development of Binhai City.