The Big Four AICs Team Up to Enter New Materials; Industrial Bank and CITIC AIC Show Diverging Investment Paces

Since March, financial asset investment companies (AIC) have been active in equity investments.

Southern Finance reporters have noticed that recently, four major bank-affiliated AICs—Bank of Communications, Industrial Bank, CITIC, and Bank of China—jointly entered the A+ round financing of Henan Baileyan New Materials Co., Ltd. (hereinafter referred to as “Baileyan New Materials”). It is rare for four AICs to jointly invest in a single entity, which also sends a clear signal that bank-affiliated long-term capital is accelerating its flow into emerging sectors.

Four Major AICs Collaborate in Funding

According to the public announcement from Baileyan New Materials’ parent company, Longbai Group (002601), and data from Qichacha, this time Baileyan New Materials introduced seven strategic investors through capital increase, raising a total of 2 billion yuan. The four major bank-affiliated AICs all participated, each with different focuses on their investment amounts.

According to the announcement, the strategic investors have collectively increased their investment in Baileyan New Materials by 2 billion yuan, subscribing to an additional registered capital of 77795.8656 million yuan for Baileyan New Materials, expecting to hold a combined equity stake of 31.40% after the capital increase.

The overall investment composition in this A+ round financing is centered around bank-affiliated AICs. Among them, CITIC Financial Asset Management Co., Ltd. stands out as the largest investor in this round with an investment of 700 million yuan, holding a stake of 10.99%; Bank of Communications AIC follows closely with an investment of 400 million yuan, holding a stake of 6.28%; Industrial Bank AIC and CITIC AIC invested 230 million yuan and 220 million yuan, holding stakes of 3.61% and 3.45% respectively; Bank of China AIC and its subsidiary Shenzhen Zhongxin Pengxiang Sci-Tech Private Equity Investment Fund (industry fund) increased their investments by 150 million yuan and 100 million yuan, holding stakes of 2.35% and 1.57% respectively.

Looking at the overall AIC investment and financing dynamics in the market since 2026, cases of multiple AICs jointly investing in a single enterprise are already rare, and the number and types of participating institutions greatly differ from this case. In the short term, it is quite uncommon to see four joint-stock bank AICs gather for financing, making it highly representative in the public investment and financing market this year.

From publicly available cases, it is common for 2 to 3 AICs to jointly invest, with the primary participants often being state-owned large bank AICs.

In early January 2026, Chengdu Kemite Special Gases (a subsidiary of Yake Technology) received joint capital injections from two AICs, Industrial Bank Investment and Xinyin Investment; in November 2022, Lantu Motors completed its A round financing, introducing three state-owned large bank AICs: Bank of China Asset, Industrial Bank Investment, and Agricultural Bank Investment.

What exactly has attracted funding from four AICs under state-owned and joint-stock banks to this new materials enterprise?

According to publicly available information, the company was founded in 2016 and is registered in Henan. It belongs to the domestic titanium dioxide industry leader, Longbai Group, focusing on the R&D and manufacturing of high-end chemical raw materials and new materials. It is deeply engaged in core sectors such as chlorination titanium dioxide and high-end titanium materials, boasting endorsements from industry leaders, mature capacity layouts, and a stable profit base. Against the backdrop of industrial upgrading and independent innovation in high-end new materials, such investment targets align closely with the national strategic emerging industry development orientation and possess stable operating cash flow and growth potential, precisely matching the core investment preferences of bank-affiliated AICs for controllable risks and long-term growth.

Significant Divergence in Investment Rhythm Among Joint-Stock Bank AICs

In terms of investment rhythm, a noticeable divergence has emerged in the investment layout of joint-stock bank AICs established during the same period. As the first joint-stock bank AIC in the country, Xinyin Investment was established on November 11, 2025, around the same time as Xinyin Jintou (November 26, 2025), but its investment layout speed is relatively ahead.

Data from Qichacha shows that Xinyin Investment has achieved direct investments in six enterprises so far, and indirectly invested in 59 entities through the invested companies, covering multiple hard technology sectors such as new energy, new materials, and advanced manufacturing. According to the official website of Industrial Bank, by the end of 2025, Xinyin Investment had accumulated an investment scale of over 6 billion yuan within less than two months of operation, with the first batch of more than ten projects focused on the new energy and new materials industries, covering science and technology innovation enterprises and private enterprises in regions like Fujian, Guangdong, and Shanghai, leveraging both investment-loan linkage and industrial investment, with a very rapid layout rhythm.

In contrast, since its establishment, Xinyin Jintou’s overall layout has tended to be conservative, currently only completing two direct investments, the first in a clean energy target and the second being the investment in Baileyan New Materials.

From an industry development perspective, the frequent actions of joint-stock bank AICs this year have also become a new trend widely anticipated in the industry.

In March 2025, the National Financial Regulatory Administration officially announced the expansion of the AIC equity investment pilot program. Subsequently, AICs from banks such as Industrial Bank, CITIC, and China Merchants were approved to establish AICs, gradually unveiling operations by the end of the year. Among them, Xinyin Investment took the lead, becoming the first joint-stock bank AIC to commence operations, followed closely by Xinyin Jintou and China Merchants Investment, quickly landing their first investments and breaking the previous market dominance by state-owned large bank AICs.

Looking back at the early development of the industry, the market was dominated by state-owned large bank AICs, with a business focus mainly on debt-to-equity conversion. Now, joint-stock bank AICs are rapidly entering the scene, with a gradual shift in their business focus towards equity investments in scientific and technological innovation industries and advanced manufacturing, transforming into long-term patient capital serving the real economy and fully supporting the development of new productivity.

In the future, as the investment systems of various joint-stock bank AICs continue to improve and the reserve of quality projects expands, these institutions will further leverage their funding and resource advantages to attract more long-term capital into emerging sectors, and the differentiated investment strategies will also promote the formation of a healthy competitive landscape characterized by diversification and collaborative empowerment in the industry.