Wenzhou Zhongke Fuquan Venture Capital Co., Ltd (Zhongke Fuquan) was formerly established on July 10, marking China Science & Merchants Investment Co.Ltd (the domestic largest direct investment fund professional management company) entering Wenzhou market for the first time. It also reflects that Wenzhou regional capital has formerly invested in PE sector.

Zhongke Fuquan's registration capital is RMB110 million, which is invested by two local bosses. It is unique in that it conducts PE investment. After its establishment, Guangdong Development Bank will entrust the capital and China Science & Merchants will help Zhongke Fuquan to conduct capital operation and invest in private equity. At present, its investment targets have been ascertained, including five or six projects distributed amongst manufacturing, IT and education sectors.

Based on the operation mode adopted by China Science & Merchants, the duration of the fund will exist from three to five years. CSM will set aside 2% of the total capital as management fee. The fund managers will get 20% of total profits after the fund's shareholders bring back the entire paid-up investment amount.