[Industry Policy] Notice on Issuing the "Policy Guidelines for Further Leveraging Private Equity Investment to Promote High-Quality Economic Development in Our City"

Chongqing Municipal Bureau of Local Financial Supervision and Administration

Chongqing Municipal Development and Reform Commission

China Securities Regulatory Commission Chongqing Bureau

About Issue and distribute 《 Further unleash the power of private equity investment

Policy Guidelines to Promote High-Quality Economic Development in Our City 》

Of the Notice

 

To all financial institutions and relevant private equity fund managers:

To fully implement the spirit of the 20th National Congress of the Communist Party of China, build a world-class Western financial hub at a high level, accelerate the development of the western region as a leading platform for private equity investment funds, and foster the seamless integration of innovation and capital ecosystems, we have formulated the "Policy Guidelines on Further Leveraging the Power of Private Equity Investment to Promote High-Quality Economic Development in Our City." These guidelines are now issued; please ensure compliance in your implementation.

 

　　Attachment: Further Leveraging the Power of Private Equity Investment to Drive High-Quality Economic Growth in Our City

　　　　　Policy Guidelines for Development

 

 

 

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Chongqing Municipal Bureau of Local Financial Supervision and Administration Chongqing Municipal Commission of Development and Reform

                       China Securities Regulatory Commission Chongqing Bureau

                                 September 28, 2023 Day

 

Attachment

 

 

Further unleash the power of private equity investment

Policy Guidelines to Promote High-Quality Economic Development in Our City

 

To comprehensively implement the spirit of the 20th National Congress of the Communist Party of China, vigorously advance the "Intelligent Integration for Prosperity and Smooth Flow" project, build a world-class western financial hub at a high level, establish a premier regional hub for private equity investment funds in the west, foster the organic integration of innovation and capital chains, and support our city's high-quality economic development, the following policy guidelines will be formulated.

I. Enhancing the Attractiveness of State-Owned Investment Funds

(1) Attract market-oriented funds to jointly build the system. Integrate funding from governments at all levels to continuously expand the scale of government and state-owned enterprise investment funds (hereinafter referred to as state-owned investment funds). Leverage the guiding role of state-owned investment funds such as the industrial investment master fund, high-quality development industry investment fund, and science and technology achievement transformation fund, while strengthening collaboration with social capital. Stay closely aligned with our city's "33618" strategy. "Initiate investments in modern manufacturing cluster systems and industry development directions. Establish a coordinated mechanism for municipal- and district-level state-owned investment funds, leveraging the policy advantages at both city and district levels to further enhance the scale of joint funding contributions."

(II) Optimize the operational mechanisms of state-owned investment funds. Coordinate and align the functional positioning of various state-owned investment funds, establish scientific assessment and evaluation criteria, and implement long-term performance reviews. For collaborative, socially-oriented sub-funds, the investment period can be extended by 1 to 3 years, depending on factors such as the investment stage and industry characteristics. According to the "Implementation Opinions on Developing Equity Investment to Promote Innovation and Entrepreneurship" (Yu Jin [2020] No. 402), state-owned investment funds are permitted to increase the reward ratio for sub-funds that successfully attract high-quality enterprises, maintain rapid investment progress, and generate substantial excess returns—provided that such increases remain within the limits of the government-guided fund's own excess earnings upon liquidation and exit.

II. Supporting Technological Innovation and Industrial Upgrading

(III) Focus on boosting the commercialization of scientific and technological achievements. Leverage the guiding roles of "seed funds," "angel funds," "venture capital funds," and other similar investment vehicles. By focusing on developing application scenarios in the technology industry, we will effectively identify and nurture early-stage tech companies, thereby enhancing the success rate of transforming scientific and technological achievements into marketable products. Encourage private equity investment firms to increase their investments in innovative technology enterprises. In accordance with the "Notice on Incentivizing Private Equity Funds to Support Technological Innovation" (Yu Jin [2021] No. 213), management companies that have invested in technology innovation enterprises for at least one year will receive a reward equivalent to 1% of the investment amount, with a cap of 10 million yuan in total. Additionally, as outlined in the "Notice on Issuing Several Policy Measures to Strengthen and Revitalize Chongqing's Industrial Economy" (Yu Jing Xin Gui Fan [2023] No. 1), support will be provided to national “ Little Giant ” Cultivating enterprises—nationally recognized for the first time (or undergoing re-evaluation) “ Little Giant ” Enterprise and manufacturing single-champion companies, as well as specialized, niche, and innovative SME incubators, will receive 500,000 yuan. — A 2-million-yuan reward. Premium subsidies will be provided for new equipment, with annual subsidy caps of up to 5 million yuan per product. Additionally, selected high-potential new materials projects will receive up to 3 million yuan in support, while innovative, high-growth enterprises in fields such as biomedicine and software information will be awarded between 1 million and 5 million yuan.

(IV) Focusing on Key Industries Investment Layout. Focusing on intelligent, connected, and new-energy vehicles, next-generation electronic information manufacturing, advanced materials, and other "33618" industries. "Modern manufacturing cluster systems establish 'track' funds to encourage..." "Chain-leading" enterprises are establishing Corporate Venture Capital (CVC) funds to integrate industry-chain resources and pursue strategic investments. To enhance policy coordination, these companies will provide financial support in accordance with the "Notice on Issuing Several Policy Measures to Strengthen and Revitalize Chongqing's Industrial Economy" (渝经信规范 [2023] No. 1). Specifically, integrated circuit design firms will receive funding support of up to 5 million yuan, covering 12% of their eligible expenses; manufacturing and packaging/testing enterprises in the IC sector will be eligible for subsidized loans of up to 20 million yuan; and IC equipment and materials firms can access subsidized loans capped at 10 million yuan. Additionally, companies developing core supporting products such as intelligent vehicle control systems, smart cockpit solutions, advanced driver-assistance systems, and vehicle-to-network connectivity technologies will receive subsidies of up to 3 million yuan. Furthermore, enterprises engaged in the research and development of entirely new energy-efficient passenger vehicles will be rewarded with up to 5 million yuan, while those focusing on hydrogen fuel cell commercial vehicles can expect rewards of up to 8 million yuan. Finally, companies contributing to the certification testing of new-energy vehicle models will be granted incentives of up to 3 million yuan.

(V) Continuous Enhance Corporate Listing Move Force. Private equity investment funds are encouraged to identify promising pre-IPO companies. A reserve pool for companies slated for listing, as well as a database of intermediary service providers, will be opened up—allowing private equity funds and other social channels to recommend companies for inclusion and share resources from these databases. According to the "Notice on Issuing the Work Plan for Improving the Reserve Pool of Companies Planned for Listing" (Yu Shang Liu Ban [2022] No. 4), companies with private equity investments that meet securities firms' project approval criteria will be given priority for inclusion in the pool under otherwise equal conditions. Additionally, as outlined in the "Chongqing Municipality Measures for Fiscal Rewards and Subsidies for Companies Listed or Delisted" (Yu Cai Gui [2022] No. 10), companies can apply for up to 8 million yuan in rewards and subsidies at different stages of their listing process, based on their progress.

(6) Effectively facilitate industry introduction and provide follow-up services. Support the introduction of corporate capital market refinancing. According to the "Chongqing Municipality Measures for Fiscal Awards and Subsidies for Companies Listed or Listed on Trading Platforms" (Yu Cai Gui [2022] No. 10), companies classified as technology-based enterprises or "specialized, refined, distinctive, and innovative" enterprises that conduct their first equity financing after listing on the Chongqing Equity Exchange Center will receive a reward of up to RMB 500,000, equivalent to 1% of the net financing amount. For listed companies that refinance through equity financing, the reward will be 5% of the net financing amount. ‰ Offering rewards of up to 1 million yuan; for listed companies conducting mergers and acquisitions, a reward will be provided at 5% of the actual transaction amount. ‰ Offering a reward of up to 1 million yuan.

3. Continuously Optimize the Fund Industry Ecosystem

(7) Continuous Improve Private equity fund business environment. The Municipal Financial Regulatory Bureau, in collaboration with the Chongqing Securities Regulatory Bureau and the Municipal Market Supervision Administration, held a comprehensive assessment and consultation meeting. In accordance with the registration and filing standards set by the Asset Management Association of China (hereinafter referred to as AMAC), they are diligently conducting thorough evaluations. Enterprises that meet the requirements can complete the comprehensive assessment process within 7 working days, significantly enhancing the efficiency of institutional establishment. A whitelist system has been established to further streamline business registration procedures and reduce filing timelines for qualified private equity fund managers. Additionally, district and county governments have been encouraged to provide guidance by setting up dedicated fund service positions, offering one-stop support for institutional setup. Qualified private equity funds are also encouraged to register as venture capital enterprises, enabling them to benefit from the tax incentives stipulated by national policies.

(8) Drive the upgrading and enhancement of key platform services. Leverage the "Sci-Tech Innovation Capital Connect" capital service platform effectively, actively seek integration with the Asset Management Association of China's registration and filing system, and provide online services such as private equity fund establishment, amendment applications, and grant applications. Additionally, offer project equity investment and financing services. Dynamically utilize the Maternal and Child Health Financial Service Platform to connect the "Project Database," "Expert Database," and "Funding Pool," collaborating with industry regulators to align with distinctive regional and county-level industries, thereby facilitating project development. Continuously organize a series of events, including the China-Singapore Financial Summit, Chongqing Venture Capital Conference, and the "Well-Known Funds in Chongqing" initiative, to strengthen collaboration and engagement with social capital, research institutions, and economic scholars.

(9) Build distinctive platforms to accelerate the concentration of institutions. Institutions that establish themselves in private equity cluster areas such as the "Western Venture Capital Center," the "Fund Innovation Service Base," and "Fund Town" will receive settlement grants and subsidies. Additionally, enterprises operating successfully within these regions—particularly those that attract numerous investment projects, focus on early-stage, small-scale, and technology-driven investments, and achieve remarkable results—will be awarded financial incentives. District and county governments are encouraged to formulate specialized support policies centered around key initiatives like institutional establishment, talent recruitment, investment rewards, and collaborative attraction efforts, while also providing comprehensive "one-stop" services to create an optimal environment for businesses to thrive and expand their operations.

(10) Focus on cultivating talent for industrial investment. Encourage each district, county, and industrial park to develop talent attraction plans for private equity investment funds and establish dedicated talent service windows. Additionally, set up practical training bases at financial and economic institutions, collaborating with state-owned investment funds and fund service platforms. In accordance with talent policies such as the "Hongyan Plan" Implementation Measures for Attracting Domestic and Overseas Talents in Chongqing Municipality, eligible investment professionals who meet the relevant policy criteria can apply for corresponding rewards as stipulated, while also gaining access to benefits including children's school enrollment services, healthcare services, wellness programs, academic exchange opportunities, housing support, and travel amenities.

 

Attachment: 1 . Chongqing's Key Mother Fund Directory

2 . Chongqing's Industrial Development Support Policies

3 . Featured Platform Directory

 

 

 

 

 

 

 

 

 

Attachment 1

 

Chongqing's Key Mother Fund Directory

(Continuously being updated)