Along with the development of China?¯s high tech industry, venture capital booms up, playing an irreplaceable role in spurring up the development of high tech industry, pointed out LIU Yanhua, Chinese Vice Minister of Science and Technology at an investment forum for software industry recently held in Beijing.
LIU revealed that the Ministry of Science and Technology has worked to spur up the development of venture capital in the country, using organized coordination and resources consolidation, in the following six aspects: 1) formulating preferential policies to encourage the participation of venture capital institutions and industry based proprietary innovations; 2) working out solutions for the withdrawal of venture capital institutions. On the one hand, MOST advocates setting up a pioneering board at the stock market, in collaboration with other involving government agencies. On the other hand, it will work with China Securities Regulatory Commission to realize the circulation of floating and tradable shares of high tech enterprises via other viable channels, creating a platform to build a multi-layered capital market; 3) consolidating S&T resources, and strengthening the connection between S&T plans and policies and venture capital, and associated support; 4) guiding more public money into venture capital, using diverse policy means. At present, MOST, in collaboration with other interesting government agencies, is working to establish a fund to guide venture capital. Under the principle of ?°guided by government, with market participation, professional management, and regulated operation?±, capital from non-government sources will be attracted to support the conversion of S&T findings; 5) MOST will join other involving government agencies and local venture capital associations in establishing a nationwide association for S&T venture capital; 6) MOST will work with the State Development Bank to enhance loan support for venture capital, particularly striving to address fund-raising difficulties of small and medium-sized S&T enterprises.
Statistics show that as of the end of 2004, there were 217 venture capital institutions serving for diverse sectors in the country, managing a fund approaching RMB 50 billion. 77% of the investment has poured in high tech businesses, including software industry. |
