The General Office of the State Council has released a set of guidelines to promote the high-quality development of government investment funds, covering an appropriate scale, a reasonable layout, sound operations and risk control measures.<\/p>\n\n\n\n
The guidelines include 25 specific measures across seven areas, aiming to build a more scientific and efficient management system for government investment funds.<\/p>\n\n\n\n
Fund operations should be market-oriented, professional and based on the rule of law. The country will also coordinate the layout of funds to prevent homogeneous competition and avoid crowding out non-governmental capital.<\/p>\n\n\n\n
The funds will focus on major strategies, key areas and weak links where the market cannot function fully, attracting more social capital and supporting the construction of a modern industrial system.<\/p>\n\n\n\n
According to the guidelines, China will fully leverage the funds as long-term and patient capital for countercyclical and cross-cyclical adjustments.<\/p>\n\n\n\n
It will also improve the funds’ level of professional and market-oriented operations by standardizing the management of fund operations, optimizing fund investment methods and fully leveraging the role of fund managers.<\/p>\n\n\n\n
The fund withdrawal system will be optimized through measures such as expanding exit channels, encouraging the development of private equity secondary market funds, and promoting merger and acquisition funds.<\/p>\n\n\n\n
The risk prevention and control system will be strengthened, and regulatory behaviors will be improved throughout the fund development process, per the guidelines.<\/p>\n\n\n\n