20 PE funds docking Enterprise Board venture capital Exit channel will be more smooth

In the first day of trading in China's gem, the National Development and Reform Commission, the Ministry of Finance and Beijing, Jilin, Shanghai, Anhui, Hunan, Chongqing, Shenzhen and other 7 provinces, municipal government officials in Beijing 30th signed an agreement to jointly set up 20 venture capital funds.　　This means that the government and social capital participation in China's emerging industries to launch the implementation of the formal, will have a far-reaching impact on China's industrial restructuring and optimization. Zhang, deputy director of the NDRC, said at the signing ceremony that the Government would further promote the diversification of financing channels for medium and small-sized High-tech Enterprises and support the rapid development of innovative enterprises.　　The opening of the gem means that China's multi-level capital market further improve, venture capital exit channels will become more smooth. Dawei, deputy director of the National Development and Reform Commission high-Tech industry division, said in an interview, in fact, as early as 2002, the National Development and Reform Commission has begun to brew the venture capital fund, the initial proposal is to establish an entrepreneurial guidance fund as a parent fund, on the basis of the establishment of a VC fund However, the market environment and various conditions were not very mature at that time, and then shelved. Since 2007, the NDRC and the Ministry of Finance have begun to focus on the venture capital Fund, and proceed from the law and policy level, first of all the "Company law" to amend the original "Corporate law" in the "registered capital of 50% for foreign investment" of "50%" modified into "100%", It is in order to adapt to the needs of the venture to solve the legal obstacles. Prior to that, the Government had introduced a preferential tax policy for VC funds in 2006. 2007, the SFC also began to focus on the establishment of the gem, for the venture capital to open up an exit channel.　　At present, after two years of brewing, market conditions and legal conditions have been in place, the creation of the fund's market team more and more mature, social fund-raising has been possible, local governments have the initiative to launch a VC fund coincides with its time. In the past few years, in fact, local governments have set up a similar venture capital guidance Fund, which is designated by the Government to set up investment companies, but because the operation mechanism is too rigid, investment areas are all-encompassing, the effect of the adjustment of industrial structure is not obvious. Dawei also pointed out that the pilot set up 20 venture capital funds, will be very different from the previous government investment funds, fully adopt the market-oriented operation, raise funds will be socialized, investment direction to focus on a certain professional field. Dawei said that for local governments, venture capital is a new attempt, the establishment of the Fund has the following four characteristics: first, the Professional fund. Each fund only locks a growing high-tech industry, no longer like the past government funds as "all-encompassing", and the second is completely market-oriented management. To change the old mode of "government taking money government", third is to raise funds socialization. The government's money is a guide, a large amount of money will be raised by the community, including overseas funds;　　After the establishment of the Fund, the professional team will be in accordance with the Charter agreement, from the project selection, funds into the withdrawal of the entire process of management, do not exclude the invitation of Overseas professional team. It is reported that the total distribution of 20Industry investment funds are professional funds, the central government in the Guarantee Fund policy-oriented premise, specific to the seven provinces and cities according to their own industrial characteristics and regional advantages to choose. These funds will be mainly to the electronic information, biomedicine, new Energy and other High-tech industries, the total amount of fund-raising is expected to exceed 9.2 billion yuan. Among them, the central government contributed 1 billion yuan, the local government funded more than 1.2 billion yuan, raising social funds nearly 7 billion yuan. This is part of an emerging industry venture project launched by the NDRC and the Ministry of Finance. The future will also be based on the timing and circumstances, continue to introduce industrial investment funds. Some analysts said that, because the fund is invested in a number of new industries, involving the size of the company does not have a traditional industry companies, this and the gem of the company structure almost no difference. Perhaps the gem is likely to become one of the main channels for future government industry funds.　　Liu Nue, vice chairman of the Securities and Futures Commission, said at the recent Beijing International Financial Forum that the GEM has officially accepted the 191 companies ' application for issuance, gem market value reached 120.6 billion yuan, accounting for the Shanghai and Shenzhen stock Market market value of 0.4%. Liu Manhong, a professor of finance and finance at Renmin University of China, said the gem would become a major channel for future industrial fund launches. This is a good sign for a lot of PE (private Equity investment Fund) and VC (venture capital).