Several policy measures to promote high-quality development of venture capital
The development of venture capital is an important measure to promote a virtuous cycle of science and technology, industry and finance. In order to implement the decisions and arrangements of the CPC Central Committee and the State Council and promote the high-quality development of venture capital, the following policy measures are proposed.
I. General requirements
To promote the high-quality development of venture capital, we must take Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as our guide, fully implement the spirit of the 20th National Congress of the Communist Party of China, fully, accurately and comprehensively implement the new development concept, focus on promoting high-quality development, and further improve the policy environment and management system around the entire chain of venture capital "fundraising, investment, management and exit". We must actively support the growth and strengthening of venture capital, give full play to the important role of venture capital in supporting scientific and technological innovation, and guide venture capital to stabilize and increase investment in key areas in accordance with the principles of marketization and rule of law. We must strengthen the position of enterprises as the main body of innovation, promote the growth of technology-based enterprises, and provide strong support for cultivating and developing new quality productivity, achieving high-level scientific and technological self-reliance, and shaping new momentum and new advantages for development.
II. Cultivating Diversified Venture Capital Entities
(I) Accelerate the cultivation of high-quality venture capital institutions. Encourage key industry enterprises, scientific research institutions, innovation and entrepreneurship platform institutions, etc. to participate in venture capital, focus on cultivating a group of excellent venture capital institutions, and support small and medium-sized venture capital institutions to improve their development level. Guide venture capital institutions to operate in a standardized manner and enhance their comprehensive service capabilities such as equity investment, industry guidance, and strategic consulting. Venture capital institutions that carry out private investment fund business in accordance with regulations shall perform registration and filing procedures in accordance with laws and regulations. Entities that have not registered and filed shall use their own funds for investment.
(II) Support the development of professional venture capital institutions. We will increase the efforts to cultivate professional venture capital institutions in the sub-sectors of high-tech, guide and drive the development of a number of specialized and innovative "little giant" enterprises, and promote the competitiveness of small and medium-sized enterprises. We will focus on new fields and new tracks, increase policy support for venture capital institutions that invest in original and leading technological innovations, and guide venture capital to give full play to the role of investing in early, small, and hard technologies.
(III) Give full play to the role of venture capital funds funded by the government. Give full play to the role of the National Emerging Industry Venture Capital Guidance Fund, the National Small and Medium Enterprise Development Fund, the National Science and Technology Achievement Transformation Guidance Fund, etc., further optimize and strengthen them, improve the efficiency of market-oriented operations, and support strategic emerging industries and future industries through the "parent fund + equity participation + direct investment" method. Optimize the management of venture capital funds funded by the government, reform and improve the fund assessment, fault tolerance and exemption mechanism, and improve the performance evaluation system. Systematically study and solve the problem of concentrated maturity and exit of venture capital funds funded by the government.
(IV) Implement and improve the state-owned venture capital management system. Support qualified state-owned enterprises to give full play to their own advantages and use venture capital funds to increase investment in industry technology leaders, technology transformation and upstream and downstream small and medium-sized enterprises in the industrial chain. Improve the state-owned venture capital management system and due diligence and compliance liability exemption mechanism that conforms to the characteristics and development laws of the venture capital industry, and explore the assessment of state-owned venture capital institutions throughout the fund life cycle.
3. Expand the sources of venture capital funds through multiple channels
(V) Encourage long-term funds to be invested in venture capital. Support insurance institutions to invest in venture capital funds in accordance with market principles. If the underlying assets of venture capital funds invested by insurance funds are the equity of unlisted companies in strategic emerging industries, the risk factors of the underlying assets shall be subject to the relevant requirements of the insurance company's solvency supervision rules. Encourage qualified venture capital institutions to issue corporate bonds and debt financing instruments to enhance the ability of venture capital institutions to raise long-term and stable funds.
(VI) Support asset management institutions to increase their investment in venture capital. Support asset management institutions to develop long-term investment products that are compatible with venture capital. Support private asset management products to invest in venture capital funds under the premise of compliance with laws and regulations and strict risk control. Encourage asset management institutions to provide and improve comprehensive financial services such as equity investment, bond investment, stock investment and asset service trusts in response to the operating characteristics and financial needs of technology-based enterprises at different growth stages.
(VII) Expand the scope of the pilot program for direct equity investment by financial asset investment companies. Support financial asset investment companies to steadily expand the scope of pilot areas based on the experience of direct equity investment in the Shanghai pilot program, give full play to the professional advantages of financial asset investment companies in venture capital, equity investment, corporate restructuring, etc., and increase support for scientific and technological innovation.
(VIII) Enrich the types of venture capital fund products. Encourage the launch of more equity-debt hybrid venture capital fund products to better match the characteristics of long-term fund allocation and risk preferences, and invest in the field of technological innovation through various means such as preferred stocks, convertible bonds, and warrants. Actively develop venture capital mother funds and contractual venture capital funds.
IV. Strengthen government guidance and differentiated supervision of venture capital
(IX) Establish a mechanism for connecting venture capital with innovative and entrepreneurial projects. Implement the "Technology Industry and Finance Integration Special Project", carry out roadshows of science and technology plan results, "One Month One Chain" for specialized, sophisticated and innovative small and medium-sized enterprises, and other activities, organize the selection of qualified technology-based enterprises, specialized, sophisticated and innovative small and medium-sized enterprises, as well as enterprises and projects that drive more employment, and strengthen the connection with venture capital institutions.
(10) Implement the patent industrialization plan to promote the growth of small and medium-sized enterprises. Select a group of high-growth enterprises, encourage venture capital institutions to lead investment and provide targeted services around the patent industrialization of enterprises, and strengthen standardized cultivation and post-investment management.
(XI) Continue to implement the tax incentives for venture capital enterprises. Implement tax support policies that encourage venture capital enterprises and angel investors to invest in seed-stage and start-up technology-based enterprises, increase policy publicity and guidance, and continue to optimize tax services.
(XII) Implement differentiated supervision that is consistent with the characteristics of venture capital funds. The regulatory requirements of the Regulations on the Supervision and Administration of Private Investment Funds will be refined, and differentiated regulatory policies will be implemented for venture capital funds in terms of registration and filing, fund raising, investment operations, risk monitoring, on-site inspections, etc., which are different from those for other private funds, to support the standardized development of venture capital funds.
(XIII) Expand the opening up of venture capital in an orderly manner. Revise and improve the "Regulations on the Administration of Foreign-Invested Venture Capital Enterprises" to facilitate foreign investors to engage in venture capital in China. Support international professional investment institutions and teams to set up RMB funds in China to give full play to their investment experience and comprehensive service advantages. Guide and regulate my country's venture capital institutions to carry out overseas investment in an orderly manner. Deepen the pilot program of cross-border financing facilitation, further optimize foreign exchange management under foreign direct investment (FDI), and facilitate venture capital institutions and other operating entities to handle foreign exchange business. Study and regulate the pilot mechanism and institutional framework of qualified foreign limited partners (QFLP), further expand the scope of the pilot, and guide overseas venture capital institutions to carry out cross-border investment in a standardized manner.
V. Improve the exit mechanism for venture capital
(XIV) Broaden the exit channels for venture capital. Give full play to the functions of the main board, Sci-Tech Innovation Board, Growth Enterprise Market of the Shanghai and Shenzhen Stock Exchanges, the National Equities Exchange and Quotations (Beijing Stock Exchange), regional equity markets and their "specialized, refined, and innovative" special boards, and broaden the exit channels for mergers and acquisitions. For technology-based enterprises that have made breakthroughs in key core technologies, establish green channels for listing financing, bond issuance, and mergers and acquisitions, and improve the quality and efficiency of the issuance review of the National Equities Exchange and Quotations (Beijing Stock Exchange). Implement the overseas listing registration management system and smooth the exit channels for foreign currency venture capital funds.
(15) Optimize the exit policy for venture capital funds. Accelerate the solution to the equity exit problem of enterprises invested by bank and insurance asset management products. Support the development of merger and acquisition funds and venture capital secondary market funds, optimize the business process and pricing mechanism of private equity fund share transfer, and promote the coordinated development of regional equity markets and venture capital funds. Promote the pilot program of physical distribution of stocks.
6. Optimizing the venture capital market environment
(XVI) Optimize the development environment of the venture capital industry. Establish a consultation mechanism for new major policies on venture capital. Before issuing major policies related to the venture capital industry and venture capital institutions, all departments should conduct consistency assessments on macroeconomic policy orientations in accordance with regulations to prevent the introduction of policies and measures that affect the enthusiasm of venture capital, especially private investment. Continue to improve the standardization of registration and management of venture capital enterprises and venture capital management enterprises. Establish and improve the statistical analysis system of the venture capital industry and strengthen information sharing among departments.
(XVII) Create a good financial ecology to support technological innovation. Under the premise of compliance with laws and regulations and controllable risks, support banks and venture capital institutions to strengthen cooperation and carry out businesses such as "loans + external direct investment". Study and improve the policy provisions on the scope of application, term, and investment ratio of merger and acquisition loans, and expand the issuance of merger and acquisition loans in the field of technological innovation. Support qualified listed companies to raise funds through the issuance of stocks or convertible bonds to acquire technology-based enterprises.
All regions and departments should take the promotion of high-quality development of venture capital as an important measure to vigorously develop science and technology finance, accelerate the realization of high-level scientific and technological self-reliance and self-improvement, and promote high-quality development, and implement it in a meticulous manner. The National Development and Reform Commission should work with relevant departments to improve the working mechanism, strengthen overall coordination, form a joint force, and jointly promote the implementation of various measures to promote high-quality development of venture capital.
Source: General Office of the State Council