Shanghai International Group (SIG) was incorporated on April 20, 2000 with a registered capital of RMB 10.56 billion. As a state-owned enterprise (SOE) belonging to the Shanghai Municipal Government, SIG functions as a platform for operating state-owned capital. In accordance with the reform of state-owned assets (SOAs) and SOEs of Shanghai and the major strategies of the Municipal Government, SIG has focused on increasing the competitiveness of state-owned capital investment management by managing capital and optimizing its flow, control and allocation. It aims to become a market-oriented professional state-owned capital operating platform driven by the “dual-wheel” strategy of state-owned capital operation and investment management. As of the end of 2017, SIG’s total consolidated assets amounted to RMB 243.85 billion, and its total consolidated net assets reached RMB 178.443 billion.
Starting as Shanghai Investment & Trust Co., Ltd. established in 1981, SIG has a history of over three decades in managing capital and providing overall financial services, especially in financing large projects. Its growth has been closely related with the reform and development of Shanghai.
Since the 1980s, SIG has served as the financing arranger and financial advisor for a number of key projects of Shanghai including Nanpu Bridge, Yan’an Road Tunnel, Hongqiao International Airport Expansion Project, the metro and maglev train network,the expressway network and Yangshan Deep-water Port. It took part in the establishment of the first local financial institutions, including Shanghai Pudong Development Bank, Wanguo Securities and HuaAn Funds, etc. It has raised over USD 4 billion from overseas markets via bond issuance and bank borrowing, significantly contributing to the socio-economic development of Shanghai.
After its official establishment, SIG developed into a comprehensive investment group by consolidating equities in financial institutions belonging to the Shanghai Municipal Government, including SPD Bank and Guotai Junan Securities, and explored overall business model of financial investment operations with controlling stakes. In 2009, in accordance with the reform of SOAs and SOEs of Shanghai, SIG was positioned as a strategic financial holding group. SIG has kept expanding its portfolio of financial investment through sponsorship, equity investment, integration and restructuring. Focusing on financial investments and also engaged in non-financial investments, it has become a comprehensive financial group and reached into sectors of banking, trust, securities, funds, financial services, insurance, asset management, overseas business and industrial investment.
Since 2014, SIG has been repositioned as the state-owned capital operating platform of Shanghai in accordance with the “Decision of the Central Committee of the Communist Party of China on Some Major Issues Concerning Comprehensively Deepening the Reform”, the “Opinions of the Shanghai Municipal Government on Further Deepening the Reform of SOEs and Promoting Enterprise Development” and the strategic arrangement of the Shanghai Municipal Government. SIG has thus promoted the “dual-wheel” strategy: state-owned capital operation and investment management. In terms of capital operation, SIG is performing its role as “two major players and one channel”, i.e. a major shareholder of state-owned equities, a major managing body of state-owned capital flow and a major channel for some state-owned capital’s entry, exit, flow and transfer, with an aim to facilitate the value-creating circulation and allocation of resources, assets, capital and funds. In terms of investment management, SIG focuses on key SOEs belonging to the Shanghai Municipal Government and conducts market-oriented integration, aiming to optimize its asset allocation. Meanwhile, following the principle of “managing capital and invigorating companies”, it will fulfill its duties as a state-owned shareholder on the basis of sound corporate governance.
SIG’s portfolio now covers a multitude of key financial institutions belonging to the Shanghai Municipal Government, including Shanghai Pudong Development Bank Co., Ltd., Shanghai Rural Commercial Bank Co., Ltd., Guotai Junan Securities Co., Ltd., Shanghai Securities Co., Ltd., China Pacific Insurance(Group) Co.,Ltd. and Shanghai Equity Exchange; a number of asset management companies, including Shanghai State-owned Assets Management Co., Ltd., SIG Asset Management Co., Ltd., Shanghai Sitico Assets Management Co., Ltd. and Shanghai International Group (Hong Kong) Co., Ltd.; a group of fund management companies, including Sailing Capital Management Co., Ltd., GP Capital Co., Ltd., Shanghai Guohe Modern Service Industry Equity Investment Management Co., Ltd., Shanghai Sci-Tech Innovation Center Equity Investment Fund Management Co., Ltd. and Shanghai Growth FOF Co., Ltd.; national financial factor markets, including Shanghai Insurance Exchange Co., Ltd. and Shanghai Commercial Paper Exchange Co., Ltd.; and large SOEs like Shanghai International Port Group.
Looking ahead, SIG will endeavor to be “market-oriented, international and professional” with an aim to enhance its competitiveness, and be engaged in state-owned capital operation, investment management and financial factor market development. It will strive to become a capital operation and investment management leader with international perspective and global competitiveness, so as to better support Shanghai’s financial development and the reform of SOAs and SOEs. In accordance with the strategic arrangement of the CPC Shanghai Municipal Committee and the Shanghai Municipal Government, SIG will utilize the market as a decisive resource-allocating tool, while leveraging its own traditional advantages and unique strengths. It will manage state-owned capital in an open, transparent, regulated and efficient manner in an effort to maximize its value, thus making contribution for Shanghai as the forerunner in the reform and opening-up and innovative development.