CCTV News: The "Guiding Opinions on Promoting the High-Quality Development of Government Investment Funds" (hereinafter referred to as the "Guiding Opinions") was announced to the public on January 7. As an important document to promote the development of government investment funds issued at the national level for the first time, what are the specific contents and what is the significance of the "Guiding Opinions"?

Government investment funds refer to investment funds that are established at all levels of governments through budget arrangements, individually contributed or jointly invested with social capital, and adopted market-oriented methods such as equity investment to guide various social capital to support the development of related industries and fields and innovation and entrepreneurship.

Hu Bo, associate professor at the School of Finance and Finance of Renmin University of China, said that government investment mainly includes three forms. One form is that the government directly invests budget funds into the fund. The second form is that the government entrusts a state-owned enterprise to hold the government's investment on behalf of the government, and the third form is that the government injects money into a state-owned enterprise in the form of capital increase, and then in the decision to increase the capital increase, it is clear that this capital increase is specifically used to contribute to a certain fund.

The "Guiding Opinions" cover the entire process of government investment funds establishment, fundraising, operation and exit. It proposes 25 specific measures in eight parts, including clarifying the fund positioning, optimizing the functions of industrial investment funds, encouraging the development of venture capital funds, and developing and strengthening long-term capital, patient capital. Experts said that the "Guiding Opinions" clarify specific measures from the entire process, which will help promote the high-quality development of government investment funds.

Hu Bo said that government investment funds are to give full play to the role of the government, to play a combination of fiscal funds and financial tools, to use the development of government funds to leverage and lead to attract social capital to support more innovation and support the development of new quality productivity. Play a guiding and driving role and strengthen patience capital

This "Guiding Opinions" specifically mention measures to strengthen patience capital. Experts said that these measures will improve the multi-level financial service system and promote the support of scientific and technological innovation in the form of long-term capital and patient capital.

Patient capital is a form of capital that focuses on long-term investment. It does not focus on short-term returns as its primary goal, but pays more attention to long-term returns. It is usually not disturbed by short-term market fluctuations. It is a capital that has a long-term outlook for capital returns and has a high tolerance for risks.

Hu Bo said that patience capital lies in two characteristics: one is a long-term capital, and the second is that it should have the ability to bear some risks.

In view of strengthening patient capital, the "Guiding Opinions" propose to reasonably determine the expiration date of government investment funds, give full play to the cross-cycle and counter-cyclical adjustment role of funds as long-term capital and patient capital, and actively guide long-term capital contributions such as social security funds and insurance funds in the country. At the same time, in areas that require long-term layout, continuous investment can be adopted to ensure the continuity of investment.

Hu Bo introduced that the development of patient capital is mainly related to the inherent characteristics of innovation. The main body of innovation is enterprises, especially small enterprises, play an important role in promoting scientific and technological innovation. Capital that supports innovation needs help and accompany these innovative entities to complete an innovation process. Therefore, it objectively needs to allocate financial resources, and should be allocated and supported scientific and technological innovation in the form of long-term capital and patient capital.