Chinese yuan photo:VCG
As part of an effort aimed at boosting technological innovation and a sound development of the market, senior Chinese officials from various departments pledged on Wednesday to take further concrete measures to support the high-quality growth of venture capital.
The State Council, or the cabinet, had approved a guideline for the development of high-quality venture capital. The latest pledges by Chinese officials highlighted the country’s commitment to creating a favorable climate for venture capital.
Li Chunlin said at a press conference on Wednesday that the guideline offers comprehensive policy measures to all aspects of venture capitalism, including raising money, investing and managing.
Li said that NDRC and other departments will implement the guideline fully and promote high-quality venture capital development. Li noted that the NDRC would also take multiple steps to improve the ability of venture-capital institutions to raise stable and long-term funds for the development and service of the real economy.
According to a circular issued by the State Council on June 19, a number of policies and measures have been approved for the promotion of high-quality venture capital. According to Xinhua, favorable policies and better management will be implemented to actively support the growth of venture capital.
Wu Meng, a representative of the China Securities Regulatory Commission, said at a news conference held on Wednesday that the regulator would work to create a better environment for venture capital. This includes continuously deepening the reform in the capital markets and making differentiated supervisory arrangements.
According to Wu, the China Asset Management Association registered 12,500 private equity fund managers and venture capital fund managers by the end of this first quarter, who managed 55,000 funds totaling 14 trillion yuan. Wu said that 104,000 projects are being undertaken in key fields of scientific and technological innovation, such as semiconductors, biomedicine and information technology. The total investment capital is 4.6 trillion yuan.
The CSRC official said that the regulator would continue to maintain smooth overseas listings channels. He noted that since the implementation in March 2023 of trial regulations for Chinese companies’ overseas listing, a total 158 companies had completed registration for overseas listing, of which 85 were listed in Hong Kong Special Administrative Region (HKSAR) and 73 in the US.
Wang Hailin, a representative of the State-owned Assets Supervision and Administration Commission said, at the news conference held on Wednesday, that the regulator would offer greater support to the venture capital funds of centrally administered state owned enterprises and guide them in increasing investment in leading technology companies, the transformation and application of scientific and technical achievements, and small and mid-sized enterprises upstream and downstream in the industrial chain.
Global Times