Xinhua News Agency, Beijing, January 7, Recently, the General Office of the State Council issued the "Guiding Opinions on Promoting the High-Quality Development of Government Investment Funds" (hereinafter referred to as the "Guiding Opinions"). The "Guiding Opinions" proposes 25 measures in 7 aspects, aiming to build a more scientific and efficient government investment fund management system and promote the high-quality development of government investment funds.

The Guiding Opinions emphasize that we should adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the Second and Third Plenary Sessions of the 20th Central Committee of the Communist Party of China, highlight the government's guidance and policy-oriented positioning, standardize the operation of government investment funds in accordance with the principles of marketization, rule of law and professionalism, develop patient capital, and pay attention to the effectiveness. Rationally coordinate fund layout to prevent homogeneous competition and crowding out effect on social capital. Improve the responsibility mechanism with consistent rights and responsibilities and compatible incentives and constraints, and promote the formation of a high-quality development pattern of government investment funds with moderate scale, reasonable layout, standardized operation, scientific and efficient, and controllable risks.

The "Guiding Opinions" propose that, first, we must find the right position and better serve the overall national development. Focus on major strategies, key areas and weak links that cannot fully play their role in the market, attract and drive more social capital, support the construction of a modern industrial system, and accelerate the cultivation and development of new quality productivity. Give full play to the cross-cycle and counter-cyclical adjustment role of funds as long-term capital and patient capital. Second, we must improve the hierarchical and classified management mechanism. Clarify the hierarchical management requirements for fund establishment, improve the differentiated management mechanism of different types of funds, and standardize the management of various types of government funding budgets. Third, we must strengthen coordination and integrate and optimize layout. National-level funds and local funds form a joint force, and provincial governments strengthen the coordinated management of funds in their regions. Fourth, we must improve the level of professional and market-oriented operations. Standardize fund operation and management, optimize fund investment methods, and give full play to the role of fund managers. Improve fund performance management, establish and improve fault tolerance mechanisms, optimize the full-chain and full-life cycle assessment and evaluation system, and not simply use a single project or a single annual profit and loss as the basis for assessment to create a good atmosphere that encourages innovation and tolerate failure. Optimize the fund development environment, highlight positive incentive policy orientation, and boost market investment confidence. Fifth, we must optimize the exit mechanism and promote a virtuous cycle of investment. Broaden fund exit channels, encourage the development of private equity secondary market funds, mergers and acquisition funds, improve the multi-level capital market system, and explore and simplify project exit processes. Sixth, we must strengthen internal control construction and prevent and resolve risks. Improve the risk prevention and control system and strictly enforce financial discipline. 7. We must strengthen organizational guarantees. Adhere to and strengthen the Party’s leadership, strengthen departmental coordination, and standardize regulatory behavior.

The Guiding Opinions require that all regions and relevant departments should raise awareness, strengthen organizational leadership, strengthen responsibilities at all levels, do a good job in overall coordination, improve management and service levels, and better play the role of government investment in supporting high-quality economic and social development.