New Measures Released for High-Quality Equity Investment
TLDR
Shanghai has implemented new measures to direct more equity investment into startup tech companies and improve the overall business environment of the equity industry. The measures aim to optimize the equity investment process, support corporate venture capital, and attract more equity institutions to Shanghai.
Key Points:
- Shanghai has released measures to direct more equity investment into startup tech companies and improve the business environment of the equity industry.
- The measures focus on optimizing the equity investment process, supporting corporate venture capital, and attracting long-term and sustainable investment.
- The measures address fundraising and investment exit issues, encouraging fund management companies to go public and innovate in their business.
- Concrete programs are implemented to facilitate investment, such as funding for early-stage science and technology companies and professional service platforms for angel investment.
- The measures also encourage the formation of equity investment clusters to improve service efficiency and create a better business environment.
- Shanghai is ranked among the top global financial centers and is actively supporting the equity investment industry.
- By September 2023, Shanghai had 1,843 registered private equity and venture capital managers managing funds of 2.3 trillion yuan (US$320.8 billion).
Shanghai has released a batch of measures to direct more equity investment into startup tech companies via stimulus as well as better entry and exit support. The measures are aimed at optimizing the business environment of Shanghai’s equity industry and promoting high-quality growth in the sector in the long run. Zhou Xiaoquan, director of the Shanghai Financial Regulatory Bureau, described the measures as pragmatic and innovative, covering all aspects of equity services including entry, investment, management, and exit.
The “Several Measures on Further Promoting the High-Quality Development of Shanghai’s Equity Investment Industry” propose 32 measures in nine areas. The focus is on optimizing the equity investment process, supporting corporate venture capital, and directing more equity investment toward tech companies in their early stages of development. The measures also aim to create a government-led investment atmosphere to attract long-term and sustainable investment, as well as encourage more equity institutions to locate in Shanghai.
The measures will come into effect on February 1 and address the issues of fundraising and investment exit. For the first time, there are policies encouraging fund management companies to go public, issue corporate debts, and innovate their business. Support and incentives will be provided to related institutions. Concrete programs have also been set up to optimize the investment-facilitating system. Stimulus will be offered to encourage the setup of funds that focus on investing in early-stage science and technology companies, and professional service platforms for angel investment will be launched.
The measures also encourage the formation of equity investment clusters to improve service efficiency and create a better business environment. Huang Yan, managing partner of Lantern Capital, commented that the emphasis on enhancing the efficiency of mergers and acquisitions and reorganizations aligns with international equity investment market standards.
Shanghai, as one of the top global financial centers, is actively supporting the equity investment industry. By September 2023, there were 1,843 private equity and venture capital managers registered in Shanghai, managing 8,865 funds with a total scale of 2.3 trillion yuan ($320.8 billion).
