National People's Congress representative, Zhu Jiandie, Chief Partner and Chairman of Lixin Certified Public Accountants: Optimize exit channels, attract venture capital institutions to invest early and in small amounts.

On the morning of March 6th, the Shanghai delegation of the Fourteenth National People's Congress held a group meeting at the fourth session of the National People's Congress. Zhu Jiandei, a National People's Congress delegate and chief partner and chairman of Ernst & Young Accounting Firm, expressed the need to improve the capital recycling mechanism to promote the development of the entrepreneurial ecosystem. He also mentioned the importance of optimizing exit channels to attract venture capital institutions to invest early and in small amounts. Currently, the main exit method for venture capital institutions is through IPOs on the Growth Enterprise Market. It is recommended to further improve the merger and acquisition exit mechanism, encourage listed companies on the Growth Enterprise Market to integrate early-stage entrepreneurial projects through mergers and acquisitions, and explore diversified exit paths such as secondary listings, direct delistings, and transfers to the New Third Board, allowing venture capital institutions to adjust their investment strategies flexibly. It is necessary to accelerate the pace of listings and embrace new ideas in order to improve the quality and structure of listed companies, and reduce the legal disputes caused by the inability of venture capital to exit due to expiration. At the same time, speeding up listings also allows small and medium-sized investors to share in the benefits of China's economic growth.