Shanghai International Group (SIG) was incorporated on April 20, 2000 with a registered capital of RMB 10.56 billion yuan. 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 optimizing the flow, control, allocation and budget balance of state-owned capital. It aims to become a market-oriented professional state-owned capital operating platform driven by the “Twin-wheel” strategy of state-owned capital operation and investment management. As of the end of 2016, SIG’ s total consolidated assets amounted to RMB 224.093 billion, with its total consolidated net assets reaching RMB 168.184 billion.
Starting as Shanghai International Trust & Investment Co., Ltd., SIG has a history of over three decades in managing state-owned capital and providing overall financial services, especially in financing large projects. Since the 1980s, it has served as the financing arranger and financial advisor for a number of key municipal projects of Shanghai including Nanpu Bridge, Yan’ an Road Tunnel, Hongqiao International Airport Expansion Project, the Rail and Maglev Transit, Expressway Network and Yangshan Deep-water Port. It has raised over USD 4 billion from overseas markets via the issuance of corporate bonds and bank borrowing, significantly contributing to the socio-economic development of Shanghai.
SIG has grown up amid the reform and development of Shanghai. During its early stage, 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 financial and investment operations. In 2009, in accordance with the reform program of SOAs and SOEs of Shanghai, SIG was positioned as a strategic financial holding group. SIG has kept expanding its portfolio through launching funds, equity investment, integration and restructuring. Focusing on financial investments and also engaged in non-financial investments, it has reached into sectors of banking, trust, securities, fund, insurance, asset management, overseas financial services and industrial investment.
Since 2013, SIG has been repositioned as the state-owned capital operating platform of Shanghai in line with the “Decision of the Central Committee of Communist Party of China on Some Major Issues Concerning Comprehensively Deepening the Reform of SOAs and SOEs” and the “Opinions of the Shanghai Municipal Government on Further Deepening the Reform of SOEs and Promoting Enterprise Development” , and according to the strategic arrangement of the Shanghai Municipal Government. SIG is promoting the “Twin-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 executor of the transfer of state-owned capital, and a major channel for investment and management of state-owned capital, 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 vertical and horizontal integrations and cross-sectional transfer of its portfolio, aiming to optimize its asset allocation. Meanwhile, it will shift its focus from managing enterprises or operations to managing capital, based on the principle of “managing capital and invigorating companies” .
SIG’ s portfolio now covers a multitude of key financial institutions belonging to the Shanghai Municipal Government: Shanghai Pudong Development Bank Co., Ltd., Shanghai Rural Commercial Bank Co., Ltd., Guotai Junan Securities Co., Ltd., Shanghai Securities Co., Ltd.; a number of asset management companies including Shanghai State-owned Assets Operation Co., Ltd., SIG Asset Management Co., Ltd., Shanghai SITICO Asset Management Co., Ltd., Shanghai International Group (Hong Kong) Co., Ltd, Sailing Capital Management Co. Ltd., GP Capital Co., Ltd., and Shanghai Guohe Modern Service Industry Equity Investment Management Co., Ltd. ; large SOEs like Shanghai International Port Group; and national financial factor markets including Shanghai Insurance Exchange Co., Ltd. and Shanghai Commercial Paper Exchange Co., Ltd.
Looking ahead, SIG will endeavor to become an effective state-owned capital operation platform in line with international practice, actively engaging in state-owned capital operation, investment management and financial factor market development. It will strive to blaze a trail for professional state-owned capital operation with Shanghai’ s own characteristics and yet applicable nationwide. In accordance with the strategic arrangements of 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 efficiently manage state-owned capital in an open, transparent and regulated environment in an effort to maximize the value of state-owned capital, thus making contributions for Shanghai to become the forerunner in the reform and opening-up drive and the pace-setter for the innovative development.