The Prime Minister spoke: the gem should tilt to the five emerging industries

The Securities Times recently specially invited the researchers, former deputy director Liu Jianjun, Shenzhen Innovation Investment Group Co., Ltd., President Li Wanshou, Shenzhen Tsinghua Research Institute Dean, Li-Venture Investment Co., Ltd., chairman Feng Kuanping three senior venture capital experts, from the policy level, Industry development and other aspects of Premier Wen on seizing the commanding heights of emerging strategic industries to explain the spirit of speech.

Premier Wen Jiabao recently pointed out that the world will enter an unprecedented era of innovation-intensive and industrial revitalization, the contention for the commanding heights of economic science and technology as a strategic focus, and gradually make the emerging strategic industries become the leading force of economic and social development. He also highlighted the need to vigorously develop new energy industry, sensor network, IoT industry, Microelectronics and optoelectronics of new materials industry, bio-pharmaceutical industry, marine industry and other five major industries.

In this connection, the securities Times recently invited the researchers, former deputy director Liu Jianjun, Shenzhen Innovation Investment Group Co., Ltd., President Li Wanshou, Shenzhen Tsinghua Research Institute Dean, Li-Venture Investment Co., Ltd. Chairman Feng Kuanping three senior venture capital experts, from the policy level, Industry development and other aspects of Premier Wen's speech spirit of interpretation.

Seizing the commanding heights of emerging industries

Need capital and system to promote

Reporter: Premier Wen Jiabao pointed out that the contention for the commanding heights of economic science and technology as a strategic focus, and gradually make the emerging strategic industries become the leading force of economic and social development. How to understand seizing the commanding heights of emerging strategic industries?

Li Wanshou: From the perspective of science and technology, China has never lacked research and development team and research force, but in the current situation, China lacks Google, Microsoft, such as the leadership of science and technology enterprises, the reason may be due to the poor transformation of science and technology in China, there are still problems such as decoupling.

In the long run, seizing the commanding heights of emerging strategic industries depends on a group of industrial clusters. The formation of emerging strategic industrial clusters needs the strong impetus of capital and system. Therefore, to seize the commanding heights of emerging industries lies in the establishment of a set of scientific and technological impetus mechanism which is beneficial to the enterprise of our country, promotes the rapid development of pioneering mechanism, encourages the rapid development of venture capital, and promotes the development of China's gem in a healthy and orderly way.

Liu Jianjun: Modern high-tech industry has the characteristics of "innovation-intensive, strong industry relevance, relatively large scale of industry", who has the core technology of the industry, who will be able to dominate the overall situation, but also seize the commanding heights of the emerging strategic industries.

Feng Kuanping: Premier Wen's reference to the five major industries is very forward-looking. The five major industries not only focus on the present, but also can foresee that the five major industries will lead the future large-scale new industrial clusters. Qian Xuesen, the older generation of scientists, put forward: science and technology lead, at least 10 years ahead. We must seize the technology, economic commanding heights, is to have such a forward-looking vision.

Bright Prospects for emerging industries

Venture capital investment is promising

Reporter: Premier Wen Jiabao highlighted the new energy industry, sensor network, IoT industry, Microelectronics and optoelectronics of new materials industry, bio-medicine industry, marine industry, and other five major sectors. What's the special meaning of this? How to judge the development trends and prospects of these industries?

Liu Jianjun: As a new industry, these five industries not only have innovative advantages and entrepreneurial potential, but also our country can play a special advantage. From the perspective of China's comparative advantage, the above five industries as emerging strategic industries is in line with our national conditions of choice. For example, China's current development of bio-pharmaceutical industry has the following four advantages: First, China has the advantages of bio-technology entrepreneurship, the second is that China has the market advantages of biotechnology entrepreneurship; third, China has a good foundation for biotechnology entrepreneurship; Four is the favorable opportunity for our country to develop the biotechnology.

Li Wanshou: China is currently among the world's largest space, maritime power, energy power, the long should look, China not only to do large countries, but also to do strong, which requires our country must be in the new energy, biomedicine, materials, space technology and other fields to face the competition.

As far as the new energy industry is concerned, the future energy will inevitably become one of the bottlenecks restricting the development of our country, which depends on the resource-based economy. How to solve the energy problem and solve the important part of the future competition? The development of new energy industry is the brunt.

And the biomedical industry will be China's only possible through its rapid development to catch up with foreign emerging industries, China as a large population, the development of High-tech bio-pharmaceutical industry in China, the people's livelihood and national strategy are very strong practical significance.

In addition, the sensor network, the Internet of things and other industries is an internet-based, the industry entity economy, logistics, commodity flow and other effective integration of information flow, and thus enhance the overall industrial efficiency of the innovative model, high threshold for entrepreneurship, entrepreneurial success opportunities are very large.

Feng Kuanping: These five industries represent the energy, information, life sciences (including agriculture, medicine), aerospace and marine five areas of scientific and technological development direction, but also the global technology hotspot. We see that in wind energy, the State has formulated relevant policies, which has promoted the rapid development of wind energy in China. Moreover the sensor net, the thing network, each net is not one enterprise can do. Our current communication network itself is a typical sensor net, the development of domestic communications industry and the government's vigorous promotion, including the reorganization of large state-owned enterprises, the establishment of industry standards and so on. Therefore, in the promotion of the five major industries, the government has the bounden duty to go ahead, and the government should, in addition to providing policies and funds, come up with pilot projects.

Reporter: In the promotion of the above five industries in the process of development, venture capital has specific ways and efforts direction?

Feng Kuanping: I am a lifelong research sensor technology, the field of sensing has a more in-depth understanding. For example, Wuxi thing networking project, we organized the Tsinghua system inside and outside dozens of companies to do, this is also involved in the Intelligent Transportation network, Public safety net project development. In addition, we have also focused on the cultivation and investment of a number of new energy, microelectronics, optoelectronics and other fields of enterprises, these projects are covered in the emerging five major industries.

Investment in High-tech companies early projects, is our basic policy, but also our consistent pursuit. It is not only the pursuit of "bigger", but also the pursuit to make the characteristics, hoping to contribute to the development of science and technology and economy in China. Originally, we are based on the incubation of "turkey chicken", actively support investment in local science and technology projects. With the growth of investment strength, we can go abroad to find projects, such as sensor network, Europe and the United States have more front-end, update sharp ideas and technology, in investment projects to the Earth, as soon as possible to shorten the gap with foreign technology, seize the technical commanding heights.

Li Wanshou: In these five major industries, deep ventures have a more in-depth exploration, and according to the division of Industrial chain, strategic investment in a series of enterprises, such as: In the new energy, deep venture investment in the Crystal branch of energy, China PV, Sunrise Electrical appliances, such as a series of solar related enterprises. In wind energy is invested in Mingyang, wind turbine bearings, such as a series of wind power industry chain related enterprises; In the new materials, we have invested in the promotion of materials, such as a series of power batteries, High-tech functional materials Enterprises, but also invested in Sheng as a representative of a series of high-performance biodegradable polymer materials enterprises; In the biomedical industry, We have invested in a series of biotechnology enterprises, such as bio-biology, North Biology, and recreational guards, aiming at accurate investment in gene technology and people's livelihood. In the marine industry, we have also invested in ocean fishing, deep processing of marine products and many other enterprises.

The Government should encourage the establishment

Emerging Industry venture Capital Fund

Reporter: In the promotion of the development of the five major innovation industries, what kind of policy does the venture hope to have?

Feng Kuanping: The country's funds should be invested heavily in the early projects, to really play the role of guiding the Fund, rather than in the IPO project, can not compete with the people for profit. I think Shanghai, Wuxi did a good job to encourage investment in the early projects, and matching the corresponding government guidance fund, three years later, the Government to guide the fund can opt out, or the investment enterprise management decided to guide the fate of the fund.

Liu Jianjun: In view of the above five industries, entrepreneurial activities have "high risk, cycle long" characteristics, I think it is necessary to promote through the following special venture capital policies: first, the establishment of industry-led venture capital investment Guidance Fund to support the establishment of a specialized industry venture capital fund; the second is to set up a special venture capital risk compensation Fund , all kinds of venture capital institutions engaged in the above five emerging strategic industries, are given appropriate risk compensation; third, the GEM market IPO policy should be tilted to the five emerging strategic industries.

Li Wanshou: As for what kind of policy the state can give us, I think we can start with the two point: first, for those investment institutions that are focused on emerging strategic industries, the State should consider tax exemptions for LP and GP, that is, exempt them from income tax and require them to reinvest part of the tax exemption, Through the formation of a benign rolling development, fast and bigger local venture capital institutions and equity investment institutions; second, governments at all levels should increase the input of government-directed funds, set up government guidance fund in cooperation with professional investment institutions in a way that benefits and 0 benefit, and more realistically encourage the establishment of industry-focused industries investment funds.

Reporter: Sharpen a decade of Gem has opened board, from the first 28 companies to invest in investment situation is not difficult to see, investment quasi gem project revenue is considerable, in the quasi-gem project temptation, how to make the venture investment institutions to be content to invest in earlier, more risky projects?

Li Wanshou: The equity investment organization has its own investment stage preference and cannot compel all investment institutions to invest only in early projects to become angel investors. Of course, the policy orientation of all levels of government as a special "market behavior" will also affect the investment stage preference of investment institutions. If this policy is clear and positive, it will attract more venture capital institutions to the earlier quality projects.

Feng Kuanping: For the Quasi IPO project, we recently also cast a few, I would like to explain that the late in the venture to promote the role of the enterprise is really not very small, entrepreneurial enterprises really need the money in the first 3-5 years, now these enterprises have been basic molding, create investment in, will be high price. But most of the venture capital from private placement, the general Fund only 5 years, the longest 8 years, put early projects often 8 years can not quit, so venture companies themselves are indeed difficult.

Liu Jianjun: I think, after the gem runs for some time, the income of the investment IPO project will naturally decline. Only early in the investment, can obtain high returns. Personal advice can be designed to guide the fund fixed dividend mechanism, incentive venture investment funds to the early stage of the investment phase forward. For a child fund, for example, if the various guidance funds hold 50% per cent, all guide funds will have a fixed dividend of 3% per cent. Then, when the sub-fund is late, the yield may be only 10%, at this time, private shareholders can only share 7% of the excess return from the Guide fund; When the sub-fund is in the medium term, the yield may reach 30%, and private shareholders can share 27% of the excess returns from the Guide fund; When the sub-fund is early, the yield may reach 60%, Private shareholders will be able to share 57% of the excess returns from the guiding fund. The sooner the investment phase shares the excess returns, the more the VC will naturally move the investment phase forward.