Days ago, Co-power Asset Management Co., Ltd. (Co-power) and New China Trust Co.,Ltd. (NCT) co-launched a trust-mode PE fund. This "NCT Co-power I Assembly Capital Trust Plan" was, reportedly, launched ahead of schedule and over-subscribed.

A host of Shenzhen-based VC firms/funds and PE management companies has been conducting much research on trust-mode PE funds establishment since last year. To raise share funds with trust mode is practicable in supervision and operation because they are generally with more investors. Previously, trust plans cannot be shareholders of a listed company, and they should exit their stakes before the investee companies go public.

Co-power GM Chi Li said equity investment is coherent with a larger cycle. Another principal from a state-owned VC firm also said trust-mode PE funds are flexible under the lax or rigid regulatory regime.