Only 30 years ago, the Central Business District of Luohu was a village called Caiwuwei.

The village has since been transformed into a joint-stock cooperative company, turning villagers into landlords and property managers.

The Caiwuwei company was one of the first village-turned-equity cooperative companies in Shenzhen to explore financial investments, perhaps on account of the influence of the business district where it was founded.

As early as December 2019, Shenzhen Investment Holdings and Luohu Joint-stock Cooperation Company reached an agreement on bond investment cooperation. This year, the first “SOE + joint-stock cooperative company” equity investment fund in Shenzhen was set up, in which the Caiwuwei company is also a partner.

This represents a new stage of the village company’s development as it diverts more attention to financial investment from real estate and fixed assets investment.

In the 1990s, Caiwuwei also took advantage of the policy advantages as well as its location close to Hong Kong to set up more than 30 enterprises. Since then, Caiwuwei began to adopt the forms of sole proprietorship, joint venture, and cooperation and successively established a number of enterprises, such as Caiwuwei Hotel, Huaden Hotel, and Hedong Hotel, helping to earn its first pot of gold.

When the 441.8-meter KingKey 100 tower was finished in Caiwuwei in 2011, it became the highest building in Shenzhen at the time, bringing wide attention to the village.

The Caiwuwei company attaches great importance to controlling investment risk in financial investment to ensure the preservation and appreciation of collective assets. In the cooperation model, the Caiwuwei company is the investor, the supervisor is the government department, and the manager is Shenzhen Investment Holdings. To ensure the security of the fund, the Luohu district government has established a risk compensation mechanism.

According to the Caiwuwei company, it plans to transform the village into a “financial village” to carry out fund management and the business related to the disposal of non-performing assets in the future.