Hony spent 1.8 billion investing City Investment Holding

 January 21 evening, City Investment Holdings announced that the domestic PE tycoon Hony spent nearly RMB1.8 billion to become it's stockowner and it was finally approved by the national authority.  After Hony Invesment injected fund into SMG Pictures, the subsidary of SMG Group in 2013, it has become the second successful state-owned enterprise(SOE for short) project in Shanghai, representing the significant progress achieved by SOE shortly after the issued of "Twenty articles of Shanghai SOE Reform", it has achieved a practical promotion on the introduction of outside stragety investor.

City Investment Holding is a comprehensive modern service provider integrated environmental protection, real estate and investment. The technology, managment and business size on environment is leading in the industry. Hony Investment is a leading PE investment institution managing RMB46 billion, it has invested on more than seventy enterprises, the successful cases including provide guiding on the reform of SOE such as China Grass, Zoomlion,CSPC Pharmaceutical Group Limited and it is named as " SOE reform expert"

The dominant stockowner of City Investment Holding is Shanghai City Investment General Company, it's GM Mr. Jiang Yao said having Hony Investment as the stragety investor of City Investment Holiding, following the direction and requirement of SOE reform with national funding during the new era  in Shanghai, it will introduce a market oriented system for the competitive enterprise, with Hony's investment experiences on SOE reform, it will futher the systematic reform of the company and optimize it's operational structure, promote the business development of the company. At the same time Shanghai City Investment Company can stimulate its capital recycling and reinvest on other secors by selling the stock, it complys with the blueprint and requirements stipulated on "Twenty articles of Shanghai SOE Reform" including: mixed ownership, specify the function and position for the implement of classified supervision, optimization of National capital layout and structure and smooth the flow channel of national capital."

Reporter also acknowledged that Hony Investment is the most active supporter with largest used limit as Shanghai QFLP, the investor used this kind of new financing method to stregthen a creative Shanhai finance and it's internationalization.

It is said that Shanghai has clearly announced to train a global outline comprised of five to eight groups with the qualification of: cross border management, with international competitive ability and brand influence; eight to ten enterprices with operation in both China and aboard, with leading overall strength; a batch of enterprisces of "expertise and renovation", with leading technology and brand name, they will enhance the upgrade of the industry.

Other views are including: to achieve the above goal, Shanghai has to introduce the method of outside stragety investor, such as using "capital with resources" or optimizing the institutional SOE and enhence the market competitive power.