China will speed up the formulation of venture cap

2022-08-24
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China will speed up the formulation of the "venture capital law"

Zhang Jingan, director of the torch center of the Ministry of science and technology of China, revealed at the "world incubation conference" held in Pudong, Shanghai on April 19 that China will speed up the formulation of the "venture capital law" to promote and regulate the rapid development of China's high-tech industry

venture capital is accompanied by the development of high-risk and high-yield industries, which is still very helpful for our R & D projects. It plays an irreplaceable supporting role for small and medium-sized scientific and technological enterprises. It not only helps enterprises solve financing difficulties, but also helps enterprises establish a set of scientific and perfect management system

in recent years, the Chinese government has vigorously advocated the development of high-tech industries and established a large number of business incubators and high-tech parks, which provides an opportunity for foreign venture capital to enter China. China also urgently needs foreign venture capital to join the composite material containing 9% graphene. However, from the current situation, the Chinese government has lagged behind in the legislation on venture capital, which has seriously hindered the inflow of foreign venture capital according to on-site experts

Huang Zhonglan, a lawyer from jintiancheng law firm, said that at present, the Chinese government stipulates that if Chinese enterprises want to list and raise funds overseas, they need not only the approval of the CSRC, but also the approval of the Ministry of information industry in relevant fields such as it industry. Complicated procedures have greatly affected the process of listing overseas and missed financing opportunities

Li Gang of AXA consulting believes that since venture capital is still a new thing for China, venture capital, which is different from traditional financing channels, has not been taken into account in China's current legal and financial structure, and there is no difficulty in establishing a smooth exit channel for venture capital. On some policy issues, such as the amount of shares and foreign exchange allowed when foreign venture capital is involved in Chinese enterprises, there is no clear explanation in law

it is obvious that only through legislation, the obstacles to the entry and exit of foreign venture capital can further promote the development of China's high-tech industry. (Huasheng daily)

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