Guangdong Province: Optimizing the management of government-funded venture capital funds, reforming and improving the fund assessment and fault-tolerant mechanism.

The General Office of the People's Government of Guangdong Province recently issued the "Action Plan for Further Promoting the High-Quality Development of Entrepreneurial Investment in Guangdong Province", proposing to optimize the operation of government-funded entrepreneurial investment funds and effectively play a guiding and amplifying role. Government-funded entrepreneurial investment funds support strategic emerging industries and future industries through the "parent fund + sub-fund + direct investment" method. The parent fund focuses on selecting excellent professional investment institutions, initiating the establishment of more specialized sub-funds, and guiding more social capital to participate in entrepreneurial investment. The government-funded parent fund invests in sub-funds and direct investment projects, and the government-funded portion can appropriately let profits on the basis of capital preservation and small profits to facilitate the raising of social capital. It will optimize the management of government-funded entrepreneurial investment funds, reform and improve fund assessment, fault-tolerance, and accountability mechanisms, conduct differentiated assessments based on the fund's life cycle, investment fields, establish a sound performance evaluation index system, partially reduce leverage ratios and reinvestment requirements, and appropriately extend the government-funded entrepreneurial investment fund and its participating sub-funds' lifespan.