Thu Sep 19 09:26:53 UTC 2024: ## China Unveils Measures to Boost Venture Capital and Support Sci-Tech Innovation
**Beijing, China** – Premier Li Qiang has emphasized the crucial role of venture capital in driving China’s scientific and technological advancements, industrial upgrades, and economic growth. During a State Council executive meeting on Wednesday, Premier Li announced a series of measures to facilitate the development of venture capital, including streamlined fundraising, investment, and management processes.
The government will also focus on creating smoother pathways for venture capital firms to withdraw their investments and encourage the listing of qualified science and technology companies both domestically and overseas. “The development of venture capital is critical to sci-tech innovation, industrial upgrading and the high-quality growth of the economy,” Premier Li stated.
The move comes as China faces challenges in its capital market activities, particularly in attracting “patient capital,” a long-term investment strategy crucial for supporting the growth of science and technology companies. To address this, the government will actively promote the development of equity transfer and mergers and acquisitions (M&A) markets, including a pilot program for distribution-in-kind shares. Additionally, the government encourages social capital to establish market-based M&A master funds and venture capital secondary market funds.
This initiative signals a renewed push by the Chinese government to foster a robust venture capital ecosystem and support the nation’s ambitious goals in scientific and technological innovation.
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