The Shanghai State-owned Assets Supervision and Administration Commission issued guidelines, clarifying the need to make state-owned capital a long-term, patient, and strategic asset. The recently released “15th Five-Year Plan for the Development of Strategic Emerging Industries in Shanghai” proposes leveraging the Yangtze River Delta Venture Capital Guidance Fund and the three major leading industry parent funds. By establishing three major leading industry parent funds with a total scale of 100 billion yuan (with a combined investment of 89.003 billion yuan), Shanghai has set a super-long duration of 15 years, mobilizing over 200 billion yuan in social capital to support hard-tech companies such as Xiuyu Technology and Muxi Co., Ltd. in overcoming challenges in research and development and market operations. At the institutional level, a “trinity” fund supervision system has been established, an early-stage project tolerance mechanism has been put in place, and industrial drive and technological breakthroughs have been included in evaluations to avoid “one-size-fits-all innovation” and ensure that state-owned assets play a supporting and leveraging role.
The Shanghai State-owned Assets Supervision and Administration Commission issued guidelines, clarifying the need to make state-owned capital a long-term, patient, and strategic asset. The recently released “15th Five-Year Plan for the Development of Strategic Emerging Industries in Shanghai” proposes leveraging the Yangtze River Delta Venture Capital Guidance Fund and the three major leading industry parent funds. By establishing three major leading industry parent funds with a total scale of 100 billion yuan (for a total investment of 89.003 billion yuan), Shanghai has set a super-long duration of 15 years, mobilizing over 200 billion yuan in social capital to support hard-tech companies such as Xiuyu Technology and Muxi Co., Ltd. in overcoming challenges in research and development and market entry. At the institutional level, a “trinity” fund supervision system has been established, an error-tolerant mechanism for early-stage projects has been put in place, and industrial drive and technological breakthroughs have been incorporated into evaluations to avoid “one-size-fits-all innovation” and ensure that state-owned assets play a supporting and leveraging role.