By Meng Chun, Department of Macroeconomic Research, DRC

Research Report No.54, 2016 (Total 4937)2016-05-3

Abstract: As an innovative means of encouraging venture capital and promoting the development of strategic emerging industries, the development of government-led funds has the general features of policy products. As structural reform has entered a critical stage, the development of government-led funds should both face up to the innate risks in emerging industries and venture capital and respect the nature of market capital to pursue interests. We should not only focus on the government’s mission in providing strategic policy guidance, but also follow the operation law for funds to become liberalized. Currently, there is still room for improvement of government-led funds in fund definition, structural design, supervision and assessment as well as risk prevention and control. It is imperative to strengthen top-level design, optimize the operation mechanism, improve the supervision and assessment system and establish a risk prevention and control system for government-led funds, so as to promote the sound and rapid development of government-led funds in China.

Key words: government-led funds, sound development, policy advice