China Government Guidance Fund Development Researc
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Posted On: 01/30/2017 9:02:19 AM
China Government Guidance Fund Development Research Report 2016 Released; Interim Measures Supports Four Major Areas and Specifies Negative List
The Measures specifies that the financial departments at different levels shall establish theinvestment funds in the following fields: supporting innovation and entrepreneurship,
supporting the development of small and medium-sized enterprises, supporting industrial transformation, upgrading and development, as well as supporting infrastructure and public services.
It is also an inevitable demand to further increase the policy effect and guidance effect of guidance funds, and facilitate their sound and fast development.
PerformanceEvaluation System for Government Guidance Fund Urgently Needed; Market-orientedOperation in Fundraising, Investment, Management and Exit Is Irresistible Trend
Strengthen Supervision, Improve Risk Prevention Measures To avoid moral hazards, government guidance funds can be entrusted to professional management companies. The government establishes a regulatory organ, and funds are entrusted to a bank, hence constituting a regulatory process roughly as “government regulator—professional management company—custodian bank”. The professional management company is independent in project assessment, investment and management, and cashing out.The bank, as an agency, allocates the funds to the accounts of designated project companies, in accordance with the investment plan of the management company and the instruction of the government regulator. Under normal circumstances, the management company cannot come into direct contact with full amount, or large amount of entrusted funds. This may serve as an effective precaution against possible problems. On this basis,the finance department, as a financial regulator of venture capital guidance funds, should review and supervise the budget and examine the use of funds. The administrative department that venture investment enterprises are filed with, as operational guidance provider, should supervise the institute construction of guidance funds, and direct venture capital firms that they hold shares to mainly invest in small and medium-sized high-tech enterprises.
http://en.pedaily.cn/Item.aspx?id=220810
.......interesting read as to structure w/in China
The Measures specifies that the financial departments at different levels shall establish theinvestment funds in the following fields: supporting innovation and entrepreneurship,
supporting the development of small and medium-sized enterprises, supporting industrial transformation, upgrading and development, as well as supporting infrastructure and public services.
It is also an inevitable demand to further increase the policy effect and guidance effect of guidance funds, and facilitate their sound and fast development.
PerformanceEvaluation System for Government Guidance Fund Urgently Needed; Market-orientedOperation in Fundraising, Investment, Management and Exit Is Irresistible Trend
Strengthen Supervision, Improve Risk Prevention Measures To avoid moral hazards, government guidance funds can be entrusted to professional management companies. The government establishes a regulatory organ, and funds are entrusted to a bank, hence constituting a regulatory process roughly as “government regulator—professional management company—custodian bank”. The professional management company is independent in project assessment, investment and management, and cashing out.The bank, as an agency, allocates the funds to the accounts of designated project companies, in accordance with the investment plan of the management company and the instruction of the government regulator. Under normal circumstances, the management company cannot come into direct contact with full amount, or large amount of entrusted funds. This may serve as an effective precaution against possible problems. On this basis,the finance department, as a financial regulator of venture capital guidance funds, should review and supervise the budget and examine the use of funds. The administrative department that venture investment enterprises are filed with, as operational guidance provider, should supervise the institute construction of guidance funds, and direct venture capital firms that they hold shares to mainly invest in small and medium-sized high-tech enterprises.
http://en.pedaily.cn/Item.aspx?id=220810
.......interesting read as to structure w/in China
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