Notice of General Office of People's Government of Shandong Province on Further Strengthening the Services for Private Equity Investment Enterprises and Venture Capital Enterprise
Date:2018-10-29Hits:Size:[ ]

Notice of General Office of People's Government of Shandong Province on Further Strengthening the Services for Private Equity Investment Enterprises and Venture Capital Enterprise

LUZHENGBANZI2018No. 198

To each municipal people’s government, each county (county-level city, district) people’s government, each department and subordinate agency of provincial government, each sized enterprise,

 To thoroughly study and implement Xi Jinping thought on socialism with Chinese characteristics for a new era and the 19th CPC spirit, to conscientiously implement the spirit of General Secretary Xi Jinping's important speech and instructions for his inspection of Shandong province, fully implement related requirements of provincial investment promotion and introduction of talents and foreign knowledge, promote high-quality economic development, to expand the supply of equity investment, accelerate the development pace of private equity investment and venture capital industry (hereinafter referred to as private equity investment industry), further strengthen the services for private equity investment enterprises and venture capital enterprise (hereinafter referred to as private equity investment enterprises), with the consent of the provincial government, the relevant particulars are notified as follows:

        I.The significance of accelerating the cultivation of private equity investment industry

Private equity market plays an important part in the multi-layer capital market system so that it is of great significance to develop private equity investment industry for the cultivation of new economic kinetic energy, expanding the contingent of entrepreneurs, boosting old and new kinetic energy conversion and achieving high quality development of economy. The provincial committee and government pay high attention to the development of private equity investment industry, the provincial government set up a provincial government-led fund in 2014 and set up a fund for old and new kinetic energy conversion in 2018 with the total scale more than 600 billion yuan while the cities also actively explore the development of private investment industry with quite some achievements. However it should be seen that some local governments and departments has insufficient understanding of the significance and importance of developing the private investment industry, the service management awareness and other problems still exist, resulting in that private equity investment industry still is the “weakness” in the provincial financial sector. Up to the end of June of 2018, the number of private equity investment companies in the whole province registered in Securities Investment Fund Industry Association only accounted for 2.6 percent of the country, and the management fund scale only accounted for 1.8 percent of the country, far lower than the proportion of social financing scale in the country of 4.32 percent. Governments and departments at all levels should fully recognize the significance to develop private equity investment industry for boosting old and new kinetic energy conversion, promote healthy development of private equity investment industry by facing problems and strengthening responsibilities so as to boost the provincial private equity investment industry to achieve new breakthroughs.

  II.Further promote standardized enterprise registration work

 Support private equity investment enterprises to conduct financial activities in an orderly manner according to law, industry and commerce (market supervision) department shall transact registration for private equity investment enterprises according to enterprise application. Private equity investment (fund) management enterprises could use the words of “equity investment (fund) management” for registered name with the approved business scope of “Entrusted management of equity investment funds engaging in equity investment management and related advisory services”, private equity investment fund enterprises could use the words of “equity investment fund” for registered name with the approved business scope of “engaging in equity investment in unlisted companies, investment in non-public offerings of stock and relevant consulting services in listed companies”. Set up venture capital enterprise and venture capital management consulting enterprise, where the name of enterprises using the words of “Venture Capital”, the business scope shall be approved as “venture investment business"; where enterprise acts as an agent for the venture capital business of other institutions or individuals such as venture capital enterprises with the company using the words of “Venture Capital Management”, the business scope shall be approved as “to provide venture company for entrepreneurial management service; venture investment consultation business”.

III.Strengthen policy guidance and support

        1.Give play to the role of government guidance and support. Governments and relevant departments at all levels will take development of private equity investment industry as an important initiative to promote old and new kinetic energy conversion, intensify efforts to invite investment of private equity investment enterprises, improve supporting service and proactively support substantial experienced institutions and individuals to set up private equity investment enterprises and vigorously introduce well-known investment institutions and( funds) at home and abroad. Governments with certain conditions could attract private equity investment enterprise to register thought setting up government-led fund by means of following the investment or joint investment. We encourage governments and departments at all levels to open resources of key projects, establish docking mechanism between private equity investment enterprise and key project, intensify the cultivation and promotion of shareholding enterprises of private equity investment enterprises and clear up the channel for private equity investment enterprises to invest and withdraw.

 2.Strengthen policy support. The relevant departments of the provincial government should actively implement the supportive policies for the existing private equity investment enterprises, and give appropriate subsidy as per the rules to those that have standardized management strong financing connection and great economic contribution. The eligible enterprises invested by private equity investment enterprise shall be preferentially incorporated into provincial registration and listing reserve resources. We shall strengthen the cultivation and instruction of personnel for private investment management In the selection of financial high-end talents and financial star of Qilu in Shandong province, priority should be given to the personnel of private equity investment enterprises and the selected be rewarded with financial incentives and incorporated into high-level talent pool of Shandong province. We shall expand the scope of incentive policies of new and old kinetic energy conversion fund in the respect of tax preference, talent introduction to the provincial private equity investment enterprises. Cities and relevant departments at all levels should actively implement and improve various preferential supportive policies to provide an active and open policy environment or the development of private equity investment industry.

3.Support agglomerated development of private equity investment industry. Such three cities of Jinan, Qingdao and Yantia should play well the “prior to carry and try” advantages of regional financial center, wealth management center and fund management service special reform and innovation while other cities should strengthen institutional innovation as well to form the agglomeration effect of the development of private equity  investment industry.

       IV. Promote regulated orderly development of the industry

  1.Regulate the operation of private equity investment enterprises. They should intensify regulated operation to improve governance capability and operational excellence and protect the legal interest of investors, and transact the formalities of registration for record to China securities investment fund industry association in time as per relevant regulations after obtaining the business license. The private equity investment enterprises should conduct prudent business in accordance with laws and regulations as well as the industry regulatory requirements, establish and improve and strictly abide by such business rules and management system as fund raising management, investor eligibility, information disclosure, risk management and internal control etc.; implement appropriate regulatory requirements, raise funds from eligible investors in within the prescribed quantity according to law, enjoy rights and interests, bear risks as agreed in the contract to improve financing service capability.

2.Establish multi-party collaborative management mechanism. Local financial regulatory authorities at all levels should make a job of comprehensive coordination and guidance work within the area for financial service and development in private equity investment industry, implement corresponding management in accordance with relevant laws and regulations to private equity investment enterprises and related financial activities; development and reform department shall be responsible for the venture capital enterprise development and the management of related activities; industry and commerce (market supervision) department shall be responsible for industrial and commercial registration and push the enterprise registration information to management department of private equity investment industry in time; Shandong Securities Regulatory Bureau and Qing Securities Regulatory Bureau shall fulfill administrative supervision duties according to law to the registered private equity fund; industry association and other intermediaries shall play an active role in industry self-regulation and the communication between governments and market, resulting in the promotion of regulated and sound  development of private equity investment industry by concerted efforts s.

3.Strengthen risk identification and prevention and disposal. Each city, county (county-level city, district) should implement localized management duty, take effective measures to properly and orderly prevent and resolve risks.

The local finance regulatory departments at all levels, development and reform departments, industry and commerce (market supervision) departments, Shandong Securities Regulatory Bureau and Qing Securities Regulatory Bureau should strengthen communication and collaboration for continuous follow-up supervision and service of private equity investment enterprises and timely find and identify the clues of hidden danger in various illegal financial activities so as to handle it according to laws and regulations.

General Office of People's Government of Shandong Province

Oct. 14, 2018

(Release in public for this document)

 

Copy to: all departments under the Provincial Party Committee, General Office of the Standing Committee of the Provincial People's Congress, General Office of the Provincial Political Consultative Conference, the Provincial Supervisory Commissions, the Provincial People's Court and the Provincial People's Prosecutor Office. All Provincial Party Committee of all democratic parties and the Provincial Federations of Industry & Commerce


Issued by General Office of People's Government of Shandong Province

Oct. 16, 2108

 








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