1st Macao-mainland QFLP fund invests big in Hengqin semiconductor projects

Global private equity fund Wise Road Capital and Macao investors in Hengqin have established the first Qualified Foreign Limited Partners (QFLP) fund for hi-tech communications projects in the Guangdong-Macao In-Depth Cooperation Zone.

The 3-billion-yuan ($472 million) QFLP fund was approved Tuesday and is the first since the program came into effect in late January. The pilot measures allow foreign individuals and institutions to invest in non-publicly traded company equities. It focuses on globally leading chips and solutions, artificial intelligence cloud computing, optical fiber transmission, related high-speed and high bandwidth interconnected applications, and data processing.

Hengqin Financial Island [File photo by Yuan Tianxiao]

The first fund in Hengqin dedicated to investments in local hi-tech projects promotes the assemblage of high-quality sci-tech enterprises; further integrates capital, science, and technology; and supports Macao's innovative development of wealth management in the Cooperation Zone. Modern finance, sci-tech research, and high-end manufacturing are key industries to facilitate Macao's economic diversification as stated in the general plan for building the Cooperation Zone, a person in charge of the fund noted.

Beijing-based Wise Road Capital, initiator of the fund, is focusing on investments in semiconductor and other high-tech industries. It and Alphawave IP of Toronto, Canada introduced WiseWave, an integrated circuit project with 2.6 billion yuan ($408 million) of investment, to Hengqin in November 2021. WiseWave received its first deliveries of Alphawave IPs in December and immediately began developing its first communications semiconductor products.

The Finance Development Bureau of the Cooperation Zone will further encourage social capital, including Macao investors to set up QFLP funds in Hengqin, and cultivate high-quality projects for the mutual development of the two regions.