Journalists
According to information from the chinese government network on tuesday, the office of the secretary of state issued the guidance on the promotion of quality development of government investment funds (hereinafter referred to as opinions), which provides 25 specific comments from seven parties, namely, those seeking to locate and better serve the national development agency, to improve the management mechanism for classification, to strengthen integration, and to consolidate and optimize the layout。
In order to better position itself to serve the national development agenda, the opinion refers to the need for government investment funds to focus on key strategies, priority areas and weaknesses where markets are not fully functioning, to attract more social capital, to support the building of modern industrial systems and to accelerate the development of new quality productivity. In the direction of investment, government investment funds are divided mainly into industrial investment funds and venture investment funds。
In particular, the opinion suggests encouraging the development of entrepreneurship investment funds. The entrepreneurship investment fund will focus on developing new quality productivity, supporting science, technology and innovation, investing in early, small, long-term and hard technology, contributing to accelerating the achievement of high-level science and technology self-empowerment, enhancing capacity for self-innovation and critical core technology engagement, and addressing the “crawling” challenge in key priority areas。
The opinion also referred to the development of long-term, patient capital. (c) rationalize the duration of the government's investment fund, which functions as a long-term capital, patient capital, cross-cyclical and countercyclical adjustment, and actively leads to long-term capital financing such as the national social security fund, insurance funds, etc. In areas where long-term layout is needed, investment continuity can be ensured through a succession of investments。
With regard to the improvement of management mechanisms for classification, the opinion refers to the possibility of increasing, as appropriate, the proportion of government funding, easing the duration requirements of the fund and extending the cycle of evaluation of the fund's performance in the context of entrepreneurship investment. In the case of industrial investment funds, management requirements should be tailored to the type, stage and distribution of the industry, with a focus on support。
Improved integration and better layout, the opinion suggests that national and local funds work together. The country-level funds should be holistic in their role as a model leader around the priority areas of building modern industrial systems and nurturing the development of new quality and productivity, supporting key core technological barriers and filling the gaps in industrial development. National-level funds are encouraged to work with local funds to create synergies between the frontier areas of science and technology and key links in the industrial chain, combining local resource endowments, through joint sub-funds or financing of local funds。
With regard to upgrading the level of specialized market operations, the opinion refers to optimizing the way the fund invests. New government investment funds can be invested either through parent-child funds or direct investment projects, and start-up investment-type funds can be encouraged through parent-child funds. In principle, sub-funds invest on a direct-to-project basis to control the level of the fund to prevent multiple layers of embedded influence on the achievement of policy objectives。
It also refers to the establishment of sound mechanisms for tolerance of errors. Following the fund's investment performance patterns, normal investment risks are tolerated, a chain-wide, life-cycle assessment evaluation system is optimized, and individual projects or a single annual profit or loss are not simply used as a basis for evaluation. Create a favourable climate that encourages innovation and tolerance for failure, encourages the establishment of fault-tolerant mechanisms with due diligence immunity at the core, and improves standards and processes for the recognition of exemptions。
Optimizing exit mechanisms and promoting a virtuous cycle of investment, the opinion mentions that the fund is deregulated. (c) study the development of exit policy guidelines for government investment funds and improve exit policy for different types of funds. Fund managers should establish an exit management system for the fund and develop exit programmes. Government investment funds should scientifically and rationally determine the withdrawal period and specify the conditions for withdrawal in their statutes or partnership agreements. Upon withdrawal of government funding, it shall be subject to the terms agreed upon in the constitution or partnership agreement; in the absence of such agreement, the transfer price shall be determined in a marketable manner in accordance with the law。
