TLDR:
China is focusing on developing sci-tech venture capital to boost industrial upgrade and economic growth. Premier Li Qiang emphasized the importance of venture capital for innovation, industrial upgrading, and high-quality economic growth.
- China aims to boost sci-tech venture capital to support industrial upgrade and economic growth.
- Premier Li Qiang stressed the importance of venture capital for sci-tech innovation and the growth of the economy.
Full Article:
China is looking to enhance the development of sci-tech venture capital to drive industrial upgrade and economic growth. Premier Li Qiang highlighted the significance of venture capital in supporting sci-tech innovation, industrial upgrading, and the overall expansion of the economy.
During a State Council executive meeting, Premier Li Qiang expressed the need for measures to boost venture capital development, emphasizing the requirement for patient capital to back the growth of science and technology companies. China’s ambitious goal of achieving technological strength is facing challenges in the country’s capital market activities.
The government in Beijing is committed to further facilitating fundraising, investment, and management processes for venture capital firms. They also plan to introduce mechanisms for these firms to withdraw their capital, while also supporting qualified science and technology companies in listing on both domestic and overseas stock markets.
Venture capital serves as a crucial form of private equity financing for start-up companies and small businesses with long-term growth potential. The Chinese cabinet has pledged to actively develop the equity transfer and mergers and acquisitions (M&A) market, advance distribution-in-kind shares pilot programs, and encourage social capital to establish market-based M&A master funds or venture capital secondary market funds.
In conclusion, China’s focus on sci-tech venture capital reflects its commitment to fostering innovation, industrial advancement, and sustainable economic growth in the coming years.
