Eight measures of the State Council promote the development of venture capital

The State Council recently issued the "Several Opinions on Promoting the Sustainable and Healthy Development of Venture Capital." The "Opinions" proposed that the first is to cultivate a multi-entrepreneurial investment entity. Institutional investors such as industry backbone enterprises, business incubators, industrial (technical) innovation centers, entrepreneurial service centers, and insurance asset management institutions are encouraged to participate in venture capital investment, and various individuals including angel investors are encouraged to engage in venture capital investment. The second is to broaden the sources of venture capital investment. Vigorously cultivate and develop qualified investors, establish a linkage mechanism such as equity claims, and orderly develop investment and loan linkage, insurance linkage, and investment linkage. The third is to increase policy support. Improve the tax policy for venture capital, establish a docking mechanism for venture capital and government projects, and study policy measures to encourage long-term investment. The fourth is to improve relevant laws and regulations. We will establish a legal environment that is in line with the characteristics of the venture capital industry, implement and improve the state-owned venture capital management system, and support state-owned enterprises with needs and conditions to establish or participate in venture capital enterprises and venture capital funds in accordance with laws and regulations. The fifth is to improve the exit mechanism. We will improve the trading mechanism of the national SME share transfer system and standardize the development of specialized M&A funds. The sixth is to optimize the market environment. Implement more inclusive support policies and measures, innovate supervision methods, strengthen post-event supervision, strictly protect intellectual property rights, and optimize the market environment of supervision, business, and credit. The seventh is to promote the two-way opening of the venture capital industry. In accordance with the principle of treating domestic and foreign investors equally, we will relax foreign investment access, simplify management processes, and encourage foreign investment to expand the scale of venture capital. Adhere to the open development path, enhance the international competitiveness of China's venture capital enterprises, and encourage domestic venture capital enterprises to actively and steadily “go global”. Eight is to improve the industry self-discipline and service system. Accelerate the establishment of a national venture capital industry association according to law, improve the venture capital investment service system, increase education and training, attract more outstanding talents to engage in venture capital investment, and improve the precision of venture capital investment.
“Start-up investment is a risky investment focused on high-tech and emerging industries. Due to factors such as insufficient investment entities and imperfect investment environment, venture capital investors still face difficulties in financing and financing.” Researcher, China Minsheng Bank Research Institute Wu Qi said that establishing a joint-stock creditor linkage mechanism is a more worthwhile policy measure, which is conducive to reducing bank credit risk, alleviating the financing difficulties of venture capital investment, and also helping financial institutions to carry out integrated operations and improve development quality and efficiency.