Several Opinions of the State Council on Promoting the Sustainable and Healthy Development of Venture Capital Investment
Several Opinions of the State Council on Promoting the Sustainable and Healthy Development of Venture Capital Investment
Several Opinions of the State Council on Promoting the Sustainable and Healthy Development of Venture Capital Investment
Guo Fa [2016] No. 53
September 16, 2016
The people's governments of all provinces, autonomous regions, municipalities directly under the Central Government, all ministries and commissions of the State Council and all departments directly under the State Council,
As an investment and financing mode that effectively combines innovation elements such as technology, capital, talents and management with entrepreneurial enterprises and an important capital force in driving mass entrepreneurship and innovation, venture capital investment plays an important role in expanding the application of scientific and technological innovation achievements, implementing new development concepts and innovation-driven development strategies, accelerating supply-side structural reforms, fostering new development engine, stabilizing growth and expanding employment. In recent years, venture capital investment has been developed rapidly in China, which has opened up investment and financing channels for entrepreneurial enterprises, effected economic restructuring and industrial transformation and upgrading, fostered new engine for economic development, increased the proportion of direct financing, promoted private investment to serve the real economy, stimulated entrepreneurship and innovation, and promoted employment growth. On the other hand, the legal and policy environment is unsound, the construction of regulatory system and industry credibility system lags behind, investment "bubble" phenomenon and potential illegal fund-raising risks exist in connection with venture capital investment. In order to further promote the sustainable and healthy development of venture capital investment, the following opinions are hereby proposed in accordance with the decisions and arrangements of the Central Committee of the Communist Party of China and the State Council:
I. General Requirements
Venture capital investment refers to an investment mode in which an investor makes equity investment in an unlisted growing entrepreneurial enterprise at the creating or rebuilding stage in an attempt to reap capital gains through equity transfer after the enterprise becomes mature or relatively mature. Angel investment refers to venture capital investment activities directly carried out by individuals other than the employees and their immediate relatives of an invested enterprise by using their own funds. When developing all types of venture capital investment including angel investment, we shall comply with the following general requirements:
1. Guidelines
We shall firmly establish and thoroughly implement the development concept of innovation, coordination, greenness, openness and sharing, make more efforts to promote supply-side structural reforms, implement innovation-driven development strategies and vigorously encourage mass entrepreneurship and innovation to give full play to the decisive role of the market in resource allocation and better play the role of government; deepen the reform of streamlining administration, delegating power, strengthening regulation and improving services, continuously optimize the institutional mechanisms, improve policies and measures, strengthen deployment, co-ordination, in-event and post-event regulation, create a favorable institutional environment, market environment and ecological environment for promoting the development of venture capital investment, expedite the establishment of a positive atmosphere conductive to the development of venture capital investment and a collaborative and interactive development pattern characterized by "entrepreneurship, innovation and venture capital investment", further expand the scale of venture capital investment to amass, enhance and optimize venture capital investment, as well as cultivate a number of Chinese venture capital investment brands with international influence and competitiveness to promote China's venture capital investment industry to take the lead in the world.
2. Basic Principles
First, insisting on serving the real economy. Venture capital investment is an important means to optimize the investment structure and increase effective investment. We need to deepen the reform of streamlining administration, delegating power, strengthening regulation and improving services, innovate regulatory methods, and make efforts to give full play to the key role of large enterprises and stimulate the creativity and vitality of a multitude of small and medium-sized enterprises ("SMEs") through venture capital investment. With the aim of supporting the development of the real economy and entrepreneurial enterprises, we shall guide venture capital investment enterprises and venture capital investment management enterprises in upholding the concept of value investment, encourage long-term investment and value investment, prevent and reduce market risks that might be incurred by investment valuation "bubblization", actively address the impact on traditional industries and sectors in the process of fostering new engine, properly handle various conflicts, make more efforts to support the real economy, and enhance sustainability to build a favorable investment environment where "venture capital is invested in the real economy".
Second, insisting on professional operation. By upholding the principle of market-orientation, we shall fully mobilize the enthusiasm of private investors and market players, give full play to the role of market rules, stimulate the establishment of private innovation models, and prevent homogeneous competition; encourage venture capital enterprises and venture capital management enterprise to heighten the awareness of professional investment and improve investment strategies by leveraging their own unique advantages, deepen internal institutional innovations, strengthen post-event management and optimize value-added services in connection with investment projects to continuously improve the professional operation and management capacity in the venture capital investment industry and solidify the foundation for the "professional operation of venture capital investment".
Third, insisting on credibility orientation. By viewing integrity as the basis for business surviving and thriving, we shall strengthen the construction of the venture capital investment industry credibility system, and establish and improve the joint integrity incentive system and the joint dishonest punishment system to encourage venture capital investment enterprises and venture capital investment management enterprises to defend integrity, comply with laws, faithfully fulfill the integrity duty to investors and create a "credible venture capital investment" development environment.
Fourth, insisting on social responsibility. By performing the mission and social responsibility of accelerating the building of an innovative nation, supporting mass entrepreneurship and innovation and promoting economic restructuring and industrial transformation and upgrading, we shall encourage enterprises engaged in the venture capital investment industry to conduct investment operation activities in strict compliance with the relevant state laws and regulations as well as industrial policies, and promote the healthy competition and green development of venture capital investment, and make a concerted efforts to maintain a good market order to foster "responsible venture capital investment" values by upholding the principle of market orientation and rule of law.
II.
......
Guo Fa [2016] No. 53
September 16, 2016
The people's governments of all provinces, autonomous regions, municipalities directly under the Central Government, all ministries and commissions of the State Council and all departments directly under the State Council,
As an investment and financing mode that effectively combines innovation elements such as technology, capital, talents and management with entrepreneurial enterprises and an important capital force in driving mass entrepreneurship and innovation, venture capital investment plays an important role in expanding the application of scientific and technological innovation achievements, implementing new development concepts and innovation-driven development strategies, accelerating supply-side structural reforms, fostering new development engine, stabilizing growth and expanding employment. In recent years, venture capital investment has been developed rapidly in China, which has opened up investment and financing channels for entrepreneurial enterprises, effected economic restructuring and industrial transformation and upgrading, fostered new engine for economic development, increased the proportion of direct financing, promoted private investment to serve the real economy, stimulated entrepreneurship and innovation, and promoted employment growth. On the other hand, the legal and policy environment is unsound, the construction of regulatory system and industry credibility system lags behind, investment "bubble" phenomenon and potential illegal fund-raising risks exist in connection with venture capital investment. In order to further promote the sustainable and healthy development of venture capital investment, the following opinions are hereby proposed in accordance with the decisions and arrangements of the Central Committee of the Communist Party of China and the State Council:
I. General Requirements
Venture capital investment refers to an investment mode in which an investor makes equity investment in an unlisted growing entrepreneurial enterprise at the creating or rebuilding stage in an attempt to reap capital gains through equity transfer after the enterprise becomes mature or relatively mature. Angel investment refers to venture capital investment activities directly carried out by individuals other than the employees and their immediate relatives of an invested enterprise by using their own funds. When developing all types of venture capital investment including angel investment, we shall comply with the following general requirements:
1. Guidelines
We shall firmly establish and thoroughly implement the development concept of innovation, coordination, greenness, openness and sharing, make more efforts to promote supply-side structural reforms, implement innovation-driven development strategies and vigorously encourage mass entrepreneurship and innovation to give full play to the decisive role of the market in resource allocation and better play the role of government; deepen the reform of streamlining administration, delegating power, strengthening regulation and improving services, continuously optimize the institutional mechanisms, improve policies and measures, strengthen deployment, co-ordination, in-event and post-event regulation, create a favorable institutional environment, market environment and ecological environment for promoting the development of venture capital investment, expedite the establishment of a positive atmosphere conductive to the development of venture capital investment and a collaborative and interactive development pattern characterized by "entrepreneurship, innovation and venture capital investment", further expand the scale of venture capital investment to amass, enhance and optimize venture capital investment, as well as cultivate a number of Chinese venture capital investment brands with international influence and competitiveness to promote China's venture capital investment industry to take the lead in the world.
2. Basic Principles
First, insisting on serving the real economy. Venture capital investment is an important means to optimize the investment structure and increase effective investment. We need to deepen the reform of streamlining administration, delegating power, strengthening regulation and improving services, innovate regulatory methods, and make efforts to give full play to the key role of large enterprises and stimulate the creativity and vitality of a multitude of small and medium-sized enterprises ("SMEs") through venture capital investment. With the aim of supporting the development of the real economy and entrepreneurial enterprises, we shall guide venture capital investment enterprises and venture capital investment management enterprises in upholding the concept of value investment, encourage long-term investment and value investment, prevent and reduce market risks that might be incurred by investment valuation "bubblization", actively address the impact on traditional industries and sectors in the process of fostering new engine, properly handle various conflicts, make more efforts to support the real economy, and enhance sustainability to build a favorable investment environment where "venture capital is invested in the real economy".
Second, insisting on professional operation. By upholding the principle of market-orientation, we shall fully mobilize the enthusiasm of private investors and market players, give full play to the role of market rules, stimulate the establishment of private innovation models, and prevent homogeneous competition; encourage venture capital enterprises and venture capital management enterprise to heighten the awareness of professional investment and improve investment strategies by leveraging their own unique advantages, deepen internal institutional innovations, strengthen post-event management and optimize value-added services in connection with investment projects to continuously improve the professional operation and management capacity in the venture capital investment industry and solidify the foundation for the "professional operation of venture capital investment".
Third, insisting on credibility orientation. By viewing integrity as the basis for business surviving and thriving, we shall strengthen the construction of the venture capital investment industry credibility system, and establish and improve the joint integrity incentive system and the joint dishonest punishment system to encourage venture capital investment enterprises and venture capital investment management enterprises to defend integrity, comply with laws, faithfully fulfill the integrity duty to investors and create a "credible venture capital investment" development environment.
Fourth, insisting on social responsibility. By performing the mission and social responsibility of accelerating the building of an innovative nation, supporting mass entrepreneurship and innovation and promoting economic restructuring and industrial transformation and upgrading, we shall encourage enterprises engaged in the venture capital investment industry to conduct investment operation activities in strict compliance with the relevant state laws and regulations as well as industrial policies, and promote the healthy competition and green development of venture capital investment, and make a concerted efforts to maintain a good market order to foster "responsible venture capital investment" values by upholding the principle of market orientation and rule of law.
II.
......