Recently, the State Council's State-owned Assets Administration Commission and the National Development and Reform Commission jointly introduced policies and measures to promote the high-quality development of central enterprise venture capital funds, and to support central enterprises to initiate the establishment of venture capital funds, focusing on early, small, long-term, and hard technology. Among them, it was mentioned that in response to issues such as “not daring to invest” and “unwilling to invest” in state-owned venture capital, the assessment and due diligence compliance exemption mechanism that conforms to the characteristics of state-owned central enterprises will be improved.

Establish a full-life cycle assessment mechanism for venture capital funds focusing on functional roles. It is necessary not only to “calculate the general account”, but also to carry out long-term assessment and evaluation of the overall investment portfolio;

It is also necessary to “calculate big accounts”. Assessment and evaluation focus on functional performance, take into account factors such as benefits and returns, and do not aim simply to pursue financial returns.

Galaxy Securities said it attaches importance to the investment value of central state-owned enterprises in the Chinese-style modernization process.

First, the goal of this round of state-owned enterprise reform is to improve core competitiveness and enhance core functions. The process of mergers, acquisitions and restructuring of central state-owned enterprises and integrating resources may be accelerated.

Second, the market-based management mechanism of central state-owned enterprises has been continuously improved. Final adjustment and incompetent exit systems will generally be implemented in 2025, and the operating level and profitability are expected to be further enhanced.

Third, in the context of boosting the capital market, the “market value management” requirements of central state-owned enterprises may be strengthened. Central state-owned enterprises will pay more attention to the market performance of listed entities, and confidence-boosting acts such as increasing dividends and starting holdings increase or repurchases in due course will become more common.

Fourth, in the context of overseas uncertainty and the transformation of old and new momentum in the domestic economy, central state-owned enterprises will play a leading role in steady growth and investment expansion, and certainty in the midst of uncertainty.

Hong Kong stocks related to central state-owned enterprises:

Three barrels of oil: CNPC, Sinopec, CNOOC;

Three major telecom operators: China Mobile, China Telecom, China Unicom;

Banking category: industry and commerce, agriculture, construction, Bank of China, etc.;

Broker category: CITIC Securities, CITIC Construction Investment, etc.;

Rail transit sector: CRRC (01766), China Express (03969), etc.;

Shipping category: COSCO Marine Control (01919), COSCO Marine Energy (01138), etc.;

Coal category: China Shenhua (01088)

Aviation category: China Aviation Science and Engineering (02357)

Type of ship: China Shipbuilding Defense (00317), etc.