On April 11, 2019, China Reform Holdings Corporate Ltd. ("CRHC") signed the cooperation agreement regarding CRHC Jianxin Equity Investment Fund in Chengdu with government bodies of Chengdu municipal government and Sichuan provincial government and some financial institutions, marking the birth of the Fund. Co-initiated by CRHC, the CRHC Jianxin Equity Investment Fund will adopt the market-oriented debt-to-equity swap approach to honor the decisions made by the central government regarding supply-side structural reform, help businesses in the real economy lower leverage and debts, and thus boost the development of the real economy. The Fund is expected to amass 150 billion yuan, with the first installment of 30 billion yuan.

The CRHC was founded with the approval of the State Council in 2010. It is a pilot business for the operation of state-owned capital, a wholly state-owned enterprise that acts as the investor of state-owned capital within the scope authorized by the state, a specialized platform for market-oriented operation of state-owned capital, and also the executor of this market-oriented debt-to-equity swap.

The CRHC Jianxin Equity Investment Fund is designed to give full play to the advantages of the CRHC as a platform for state-owned capital operation, the expertise of participating financial institutions, and the geographical and industrial advantages of Chengdu, advance the implementation of more debt-to-equity swap projects, and substantially reduce the leverage and debts of businesses in the real economy.

As one of the first law firms providing legal services for market-oriented debt-to-equity swap, DeHeng has advised many major companies in this regard, and accumulated rich experiences. As the CRHC's legal counsel, the DeHeng team in the Beijing office, led by partner Mr. Mu Hongbao, with primary support from lawyers Wang Ziheng and Wang Miao and associate Cheng Bin, provided professional, premium and efficient services for the client.