A robot demonstrates its walking ability at the 26th China High-Tech Fair (CHTF) in Shenzhen, south China's Guangdong Province, Nov. 14, 2024. A variety of robots and products of related industries are exhibited at the ongoing 26th CHTF, attracting lots of attention. Photo: Xinhua

Two Chinese authorities on Monday released measures to promote the high-quality development of central enterprises' venture capital (VC) funds, supporting central enterprises to establish funds that focus on early, small and long-term investment and hard technology, according to a statement released on the website of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC). 

The measures aim to guide central enterprises to utilize VC funds as a market-oriented tool, in a bid to create an industrial investment and financing system that meets the requirements of innovation and development, while encouraging central enterprises to play a greater role in constructing the country as a scientific and technological powerhouse. The measures were jointly issued by SASAC and the National Development and Reform Commission.

The implementation of these measures will follow a raft of measures unveiled by the State Council in June this year, as China will expand the opening-up of VC investment by revising regulations and boosting accessibility for foreign investors.

The measures will encourage the selection of innovative enterprises that are at an early or growing development stage as major investment targets, while supporting the growth of innovative enterprises in the long term. The duration of the central enterprises' VC funds can be extended up to 15 years, nearly double that of general equity investment funds. 

In addition, the measures will boost efforts to invest capital into hard technology and support central enterprises in setting up funds targeting the development of innovative enterprises dedicated to their specialties and targeting major strategies, key fields and core technologies.

Central enterprises are encouraged to invest in high-quality innovative projects as well as to strengthen cooperation with schools, research institutions, technological incubators and industrial parks. Meanwhile, central enterprises should provide support such as strategic guidance and industrial application for VC enterprises. Qualified projects can be merged and acquired by central enterprises through market channels, and can also be listed or transfer equity.

The policy support will further optimize the investment environment as well as promote the transformation of scientific and technological achievements, Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, told the Global Times on Monday. 

By increasing capital investment in innovation and supporting the development of scientific and technological enterprises, the policy provides strong capital support for the cultivation and development of new quality productive forces and the realization of a high level of scientific and technological self-reliance and self-improvement, Wang said. 

Global Times