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GF Securities Contributes RMB 2 Billion to Support Private Businesses

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In accordance with directives from the central government, to assist private enterprises in troubled circumstances, GF Securities has contributed RMB 2 billion to participate in the troubled assets relief program. On November 6th, GF Securities contributed RMB 1 billion to the "Securities Industry Support Fund for Private Enterprise, FOF Asset Management Plan." The purpose of the fund is to provide liquidity and decrease risk for outstanding enterprises. In addition, RMB 1 billion will be contributed by GF Xinde, a subsidiary of GF Securities.

The fund will be managed by GF Asset Management (Guangdong), with a FOF investment structure. GF Asset Management will actively the investment funds, based on their evaluation of the listed companies market capitalization, based on principles of equity investment and using stocks as collateral. The goal is to provide liquidity through market orientated mechanisms, and to make investments based on through market based valuations. Through equity and debt investments, and liquidity by using shares as collateral, they will also act as financial advisors, to assist in the long-term development of private enterprise.

The A-markets experienced heavy volatility throughout 2018. Numerous listed companies (especially private enterprises)   faced liquidity issues because of declining stock prices. If these risks influence the production and business side of these private enterprises, there would be a greater chance of systematic risk. Under these conditions, the Securities Association of China proposed a series of asset management schemes and proposals. RMB 21 billion was contributed form 11 different investment banks, with GF Securities acting as one of the key players.

Senior leadership from GF Securities expressed their unwavering support for the development of private enterprise. In terms of product management, GF Securities professional financial management skills, abundant investment and M&A experience, and active management skills will be a valuable asset. This will increase liquidity for listed companies, improve capital structures, and promote healthy development for listed companies. 

Going forward, GF Securities will continue to partner and work with various state owned enterprises, national investment platforms, commercial banks, and insurance companies. A series of asset management plans will be designed and implemented, to assist private enterprises through liquidity and capital market services. Through steady corporate governance and maintaining control of equity interests, private enterprises will enjoy steady and sustainable development.

GF Securities mission has always been to promote national prosperity through creating value in financial markets. To promote healthy capital markets, to give back to society, and actively adhere to national policy, and is a committed supporter for the development of private enterprise throughout China.