TLDR:
State-backed funds in China are focusing on developing “patient capital” to strengthen technological self-reliance. This capital aims for long-term returns rather than quick profits. The government is looking to nurture State-owned enterprises’ funds and government investment funds to act as patient capital. Measures include improving fund performance evaluation, relaxing fund size limits, and encouraging insurance companies to invest more in VC funds. China is also supporting the VC sector through facilitating mergers and acquisitions, piloting return distribution to VC investors, and ensuring smooth channels for overseas listings.
With more policy support, efforts are being made to develop patient capital in China to enhance sci-tech self-reliance. State-backed funds are expected to lead the way, nurturing long-term investments that focus on strengthening technological development. Various measures are being implemented to support the venture capital sector, including improving fund performance, relaxing fund size limits, and encouraging insurance companies to invest more in VC funds. The goal is to foster innovation and sustainable growth in key industries.
