Interim measures for the implementation of Beijing SME venture capital Guidance Fund

Notice of Beijing Municipal Development and Reform Commission and Finance Bureau on the issuance of interim measures for the implementation of Beijing SME venture Capital Guidance Fund (Beijing-(2008)1167)

All relevant units:

In order to further change the government funds support mode, to solve the problem of SME financing in the start-up period, promote the small and medium enterprises to develop well and fast, the municipal development and Reform Commission, the Municipal Finance Bureau, according to the National 10 Ministry of the "Interim measures for the management of venture capital enterprises" and the relevant provisions Beijing SME Venture capital to guide the implementation of interim measures (hereinafter referred to as "interim measures"), and organize the implementation of Beijing SME Venture Capital Guide Fund pilot. The interim measures are now approved by the municipal government and issued to you, please comply with the implementation.

Beijing Development and Reform Commission

Beijing Municipal Finance Bureau 

July 3, 2008 

Interim measures for the implementation of Beijing SME venture capital Guidance Fund

Chapter I. GENERAL PROVISIONS

The first is to implement the "People's Republic of China SME promotion law" to ease the financing problems of SMEs in the start-up period, to support the independent innovation of small and medium-sized enterprises, improve the entrepreneurial development environment, based on the "interim measures for venture capital enterprise Management", "Beijing Municipal government Committee of the Chinese Communist Party to enhance According to the "Scientific and technological SME venture capital Guidance fund Management interim measures", "on the Industrial Technology research and development funds to pilot venture capital venture in a number of guiding opinions", the formulation of these measures.

The second Beijing SME venture capital Investment Guide Fund (hereinafter referred to as "guiding fund") is mainly used to guide venture capital Enterprises to invest in entrepreneurial period.

The third Guide fund funds mainly from Beijing to support industrial development of various funds and other government funds, guide the Fund income and other social funds.

The article four guides the Fund to guide the Social Fund to invest in conforms to the Beijing city function localization and the related industrial policy, the industry investment direction pioneering period science and technology, the innovation type small and medium-sized enterprise.

The purpose of the Guide fund is to innovate the way of government funds support, to guide private funds into the field of venture capital and encourage them to invest more in SMEs by exerting the lever amplification effect of financial funds. The Guide fund is not for profit purposes.

Sixth, the Municipal Development and Reform Commission, the Municipal Finance Bureau is responsible for guiding the use of the Fund decision-making, supervision and management; During the pilot period, the Beijing SME Service Center was entrusted to represent the Government as the representative of the Guiding Fund, and to guide the Fund's Daily Management organization ) determined by way of establishment or public choice, the open selection of domestic commercial banks as funds custodian banks for the channelling of funds.

Chapter II Guide the support of the fund the Seventh Article Guide the Fund to establish the venture capital enterprise jointly by the equity participation support Way, the venture capital Enterprise (hereinafter referred to as "equity investment Enterprise") which is invested by the guiding fund, mainly invests to the SME in the start-up period.

Eighth a venture capital institution which satisfies the following conditions shall, when initiating the establishment of a venture capital enterprise as a promoter, apply for the equity investment of the Guiding Fund:

(a) Paid-in capital of more than 50 million yuan, all investors are funded in the form of money; (b) There is a clear area of investment; (iii) at least 3 full-time senior managers with more than 5 years of venture capital or related business experience; (iv) At least 3 successful cases of SME investment, That is, the annual average yield of the investment is not less than 20%, or the equity transfer income is higher than the original investment of more than 20%; (v) Management and operational norms, with strict and reasonable investment decision-making procedures and risk control mechanisms; (vi) in accordance with the State Enterprise finance and accounting system There is a sound internal financial management system and accounting methods; (vii) The venture capital enterprises pledged to set up investment will focus on the science and Technology and innovative small and medium-sized enterprises which conform to the Beijing urban functional orientation and related industrial policies and industrial investment-oriented.

Nineth, the evaluation decision-making procedure of guiding Fund equity investment is as follows:

(a) Public solicitation. Commissioned by the Municipal Development and Reform Commission and the Municipal Finance Bureau, the fund Management institution is open to the public to solicit and guide the Fund cooperation venture capital institutions.

(b) Institutional declaration. The venture capital organization to be cooperated with the Fund Management organization to submit the investment plan of participating venture capital enterprises.

(iii) expert review. The Municipal Development and Reform Commission and the Municipal Finance Bureau organize experts to set up an expert assessment committee to review the investment plan.

(iv) Social publicity. Through the expert evaluation of the venture capital institutions, in the relevant media publicity, publicity period of 2 weeks. The organization that discovers the problem in the publicity, directs the fund not to cooperate.

(v) Government decision-making. The Municipal Development and Reform Commission and the Municipal Finance Bureau, according to the results of expert review, determine the venture capital institution, approve the investment plan and inform the Fund management organization.

(vi) Implementation of the programme. The Fund Management organization shall implement the approved investment plan.

The tenth article guides the fund the highest proportion does not exceed the equity investment enterprise Paid-in Capital 30%, and cannot become the first big shareholder.

The 11th article shares the venture investment enterprise Operation period longest is 10 years.

12th the idle funds that guide the fund can only deposit banks and buy Treasuries.

13th according to the operation situation of investment ventures invested by participating enterprises, guiding the Fund's investment income in participating ventures, a certain proportion can be awarded to other shareholders, or the performance remuneration of the Investment Management team of venture capital enterprises should be paid to guide and encourage other shareholders to continue to support the development of SME venture capital.

Chapter III Guide the exit of the fund 14th the Guide Fund in the equity participation in venture capital Enterprises stable operation, can be completed through the following channels to achieve a virtuous cycle of guiding funds: the transfer of equity priority to other shareholders;

15th an equity venture investment enterprise shall identify the following matters in the investor agreement and the Articles of association:

(a) In the case of an assignee, the guiding fund may withdraw at any time, and (b) Other shareholders of the venture capital Enterprise shall not withdraw from the Guide fund before.

16th the equity participation of the other shareholders or investors of the venture capital investment enterprise in the equity investment venture within 3 years after the input of the fund, the transfer price is referred to the original investment of the fund; over 3 years, The transfer price refers to the sum of the proceeds of the original investment of the Fund and the benchmark interest rate of 1-year loans issued by the PBC in accordance with the transfer.

17th Equity Investment enterprises liquidation after maturity, guide the fund to take ownership ratio to obtain principal and income. When the equity investment enterprises take place in bankruptcy liquidation and the creditor's creditor's rights are discharged according to the legal procedure, the remaining property first liquidate the guiding Fund.

The fourth chapter guides the management and supervision of the fund 18th Municipal Development and Reform Commission, the Municipal Finance Bureau performs the following duties:

(a) The establishment of Guidance fund investment Project evaluation procedures; (b) According to the assessment procedures, the establishment of expert Assessment Committee, the Organization of Experts to review the Declaration of venture capital investment institutions to set up a venture capital Enterprise investment Plan, according to expert opinion, research and determine the target of the Fund, the establishment of venture capital investment Program (iii) entrusting, directing and supervising the management of the Fund by its governing bodies; (iv) lead the establishment of the Oversight Management Committee to coordinate and discuss issues arising from the day-to-day management of the Fund.

19th The fund Management Agency shall perform the following duties:

(a) According to the Guidance Fund investment project appraisal procedure, faces the social public solicitation to guide the Fund to cooperate the venture investment organization; Recommend the experts to participate in the evaluation of the investment plan of the venture capital Enterprise jointly established by the venture capital organization and the Guiding Fund; Organize and implement the investment plan approved (ii) to the joint venture investment enterprises stationed in the municipal Development and Reform Commission, the Board of directors and supervisors approved by the Municipal Finance Bureau; The representative directs the Fund to exercise the shareholder's right and undertakes the shareholder's duty to the equity investment enterprise by the amount of the capital contribution; (iii) manage the equity interest formed by guiding the Fund, and timely propose the exit plan, and report to the municipal development After the approval of the Municipal Finance Bureau, it is responsible for the implementation of the equity withdrawal; (iv) Organize the social intermediary agencies to carry out annual special audits of equity ventures, supervise the operation of equity Ventures and report to the Municipal Development and Reform Commission and the Municipal Finance Bureau on a regular basis.

The fifth chapter is the operation of venture capital Enterprise 20th, equity investment enterprises should follow the following principles:

(a) investment operation under the interim measures for the administration of venture capital enterprises, focusing on investment in the area of investment as stipulated in article Fourth of these measures; (b) The amount of capital invested in the start-up period of the Beijing region is not less than twice times that of the Guiding Fund; (iii) investment in a single enterprise shall not exceed 20 of the total capital invested by VC Enterprises %; (iv) The listed enterprises may not be invested in equity, but after the listing of the invested enterprises, the shares of venture capital Enterprises held in the unassigned part of the share and its placing part is not limited, (v) not to invest in other venture capital enterprises.

21st Equity Venture Investment enterprises shall not engage in the following business:

(a) absorb or disguise deposits, loans, borrowing, (b) futures and financial derivatives transactions, (iii) Mortgage and guarantee business, (iv) Real estate investment, (v) Sponsorship and donation, and (vi) Other businesses prohibited by the management Department of venture capital Enterprises.

22nd the fund management institution does not carry out the investment business in accordance with the provisions of article 20th and 21st of these measures, it requires the participation of venture capital enterprises to adjust; If the coordination is invalid, the municipal Development and Reform Commission and the Municipal Finance Bureau will guide the fund to withdraw from the equity venture investment enterprise. Sixth.

23rd article This method by the Municipal Development Reform Committee, the City Finance Bureau is responsible for the explanation.

24th the measures are implemented after 30th from the date of publication.

Publishing department: Other institutions in Beijing

Release date: July 03, 2008

Implementation date: August 03, 2008 (Local regulations)