These Opinions are hereby formulated to further optimize the development environment for the private equity investment industry in our city, promote the clustering and high-quality development of various private equity investment institutions, enhance the level of financial services to the real economy, and advance high-quality economic development.
I. Defining Development Goals
1. Adhere to a dual approach of attracting and nurturing enterprises. Promote and guide the clustering and development of government investment funds as well as various private fund enterprises, including angel investment, venture capital, equity investment, industrial investment, and securities investment. Facilitate the integration of various capital sources and guide social capital to increase investment in the city’s leading industries and strategic emerging industries.better leverage the role of funds in attracting investment, and focus on building a comprehensive fund ecosystem covering the entire lifecycle of enterprises—from startup to growth and maturity—to provide robust financial support for the construction of a modern “Eco-Paradise and Smart Manufacturing City” in this new phase.
II. Optimizing the Business Environment
2. Optimizing the Market Access Environment. Streamline the business registration processes for private equity, venture capital, and private securities firms; accelerate processing speeds and shorten processing times; and establish “green channels” for business registration and changes to business details. Improve the information-sharing mechanisms among market supervision, financial regulation, and other relevant departments regarding private fund registration; establish a routine mechanism for publicizing enterprises engaged in abnormal business operations and related measures for business deregistration.
3. Build a Comprehensive Service Platform. Explore the establishment of a “one-stop” digital service platform by integrating service windows from relevant departments and institutions—including market regulation, administrative approval, taxation, banking, and industry associations—to provide high-quality, tailored services covering the entire lifecycle of funds, from registration, account opening, and filing to investment, changes, and exit, as well as policy consultation and reporting.
4. Create a Private Equity Fund Cluster. Coordinate the city-wide layout of private equity investment funds and guide their clustered development. Aligning with the industrial development positioning and strengths of counties and districts, actively attract intermediary institutions, auxiliary industries, symbiotic industries, and supporting organizations that serve core business sectors to improve the private equity financial industry service system.
III. Strengthening Policy Support
5. Settlement Incentives. Newly established private equity fund management institutions will receive an incentive equivalent to 5‰ of their actual assets under management. Newly relocated funds will receive an incentive equivalent to 5‰ of the uninvested portion of their actual capital raised, provided that the actual capital raised reaches at least 100 million yuan and excludes government contributions. For funds that are newly established or have increased their capital after relocation and operate in compliance with regulations, incentives will be granted once the increased capital meets the aforementioned requirements.
6. Investment Incentives. For private equity funds registered in our city that invest in non-listed enterprises within our jurisdiction and generate tangible industrial output, provided the equity is held for more than 24 months and all investment funds have been fully disbursed, a 1% incentive of the investment amount will be granted to the private equity fund management institution, with a maximum cumulative incentive of 5 million yuan per enterprise.
7. Fiscal and Tax Incentives. Private equity funds and private equity fund management institutions established in this city may receive incentives based on their contributions to the local economy. The specific standards and duration of such incentives shall be determined through agreements between the relevant counties, districts, and development zones and the private equity funds or their management institutions. For eligible venture capital enterprises and angel investors, tax preferential policies shall be implemented in accordance with relevant national regulations.Rewards will be granted for the local tax contributions paid by general partners (GPs) and limited partners (LPs) of private equity funds registered in the city; the specific standards and duration of such rewards shall be agreed upon through agreements between the relevant counties, districts, and development zones and the private equity funds or their management institutions.
8. Talent Policies. Where talent introduced by private equity funds and private equity fund management institutions meets the requirements of talent policies such as the “Implementation Opinions on Focusing Efforts to Build a Talent Hub and Promote Innovation-Driven Development (2021 Revised Edition)” (Ma Fa [2021] No. 8), applications shall be organized in accordance with the city’s key talent introduction project application procedures and given priority support.For senior management of private equity funds and private equity fund management institutions recognized by municipal financial regulatory authorities and other relevant departments, the local government contribution portion of their wages and salaries for the first three years starting from the year of recognition, as well as the local government contribution portion from the reduction or transfer of their holdings in enterprise shares, shall be rewarded in accordance with agreements between the respective counties, districts, and development zones and the private equity funds or private equity fund management institutions.
9. Office Space Subsidies. To accelerate the development of fund clusters, a certain amount of office space may be provided free of charge within the cluster based on the needs of private equity funds and private equity fund management institutions.Private equity investment institutions purchasing office space for their own use may receive a one-time subsidy equivalent to 1.5% of the purchase contract price, with a maximum subsidy of no more than 5 million yuan. Those leasing office space for their own use may receive rent subsidies: 100% for the first three years and 50% for the following two years. The subsidized area shall be commensurate with the actual scale of management, and the maximum subsidy per enterprise shall not exceed 2 million yuan.
IV. Serving the Real Economy
10. Encouraging Investment in Early-Stage, Small-Scale, and Technology-Based Enterprises. Private equity fund management institutions established in the city are encouraged to increase their investment in seed-stage and early-stage technology-based enterprises. For investments in such enterprises within the city that have been held for more than two years, a reward of 10% of the actual invested amount will be granted. The maximum reward per enterprise is 1 million RMB for the fund management institution,with a cumulative annual reward of no more than 5 million RMB per fund management institution. If a private equity investment fund incurs actual losses within five years after investing in a local seed-stage or early-stage technology-based enterprise for at least one year, a subsidy will be provided equivalent to 20% of the actual loss incurred from the fund’s first-round investment in that single project. The maximum risk subsidy per investment project is 2 million RMB, and the maximum annual risk subsidy per private equity investment fund is 5 million RMB.The counties, districts, and development zones where the investee enterprises are located shall be responsible for providing application services for investment incentives and loss subsidies. Seed-stage and early-stage technology-based enterprises refer to those that meet the conditions specified in the “Notice on Tax Policies for Venture Capital Enterprises and Angel Investors” (Cai Shui [2018] No. 55) and the “Notice on Implementing Inclusive Tax Reduction and Exemption Policies for Small and Micro Enterprises” (Cai Shui [2019] No. 13) issued by the Ministry of Finance and the State Taxation Administration.
11. Support for Fund-Led Investment Promotion. For target enterprises of private equity funds that relocate to our city, if the Municipal Investment Promotion Center determines that they meet the requirements for strengthening and complementing the city’s leading industrial chains, they shall be treated as investments in local enterprises. A reward of 1% of the fund’s actual disbursed investment amount shall be granted to the fund management institution.Government-guided funds are encouraged to co-invest in private equity funds. For target enterprises in which such funds have invested and which have been attracted to establish operations in our city, 60% to 90% of the returns on the government-guided fund’s investment—after deducting funding costs—may be awarded to the fund management institution or management team, based on the target enterprise’s contribution to the local economy, in accordance with the procedures stipulated in the Ma’anshan Municipal “Rules of Procedure for the Board of Directors of the Guided Fund.”If a domestic listed company (including those listed on the Shanghai Stock Exchange, Shenzhen Stock Exchange, and Beijing Stock Exchange, excluding ST-listed companies) relocates to our city, it shall be treated as a domestic initial public offering (IPO). A one-time reward of 5 million yuan shall be granted to the fund management institution, and a reward of 16 million yuan shall be granted to the listed company.
12. Promote green transformation and development. Establish a green project database and a list of green enterprises to facilitate effective matching between green funds and projects, and guide social capital to invest in enterprises in sectors such as energy conservation and environmental protection, clean energy, resource recycling, green transportation, and green building. Vigorously cultivate various types of green institutional investors and guide venture capital, private equity, pension funds, and insurance funds to engage in green investment in our city.If a private equity investment fund incurs actual losses within five years after investing in a local green enterprise for a full year, a subsidy will be provided equivalent to 10% of the actual loss incurred on the fund’s initial investment in that single project. The maximum risk subsidy per project is 2 million yuan, and the maximum annual risk subsidy per private equity investment fund is 5 million yuan. The criteria for identifying green enterprises will be formulated by the Municipal Development and Reform Commission in conjunction with the Municipal Bureau of Economy and Information Technology, the Municipal Ecology and Environment Bureau, and other relevant departments.
13. Promote the cultivation of enterprises for listing. Establish a matching service mechanism to prioritize the inclusion of eligible local enterprises invested in by private equity investment funds into the reserve pool of enterprises for listing and trading, providing them with focused support. Encourage local financial institutions to collaborate with private equity investment institutions to implement investment-loan linkage and investment-bond linkage, and promote various innovative models such as investment-loan-insurance linkage to support the development of enterprises in the reserve pool for listing.Regarding new business models, technologies, and approaches introduced by local start-ups in emerging industries nurtured through private equity investment, relevant municipal departments and state-owned enterprises and institutions are encouraged to actively adopt them. Adhering to the principle of “distinguishing three categories,” we will adapt to the unique characteristics of the funds and make effective use of the error-tolerance and correction mechanisms. The Municipal Bureau of Local Financial Supervision shall actively implement the strategic cooperation agreements signed by the municipal government with stock exchanges and financial institutions, strengthen standardized guidance and targeted services for invested enterprises, and accelerate the process of enterprise listings.
V. Improving Support Mechanisms
14. Promote Government Guidance and Integration. Continuously increase fiscal investment in the Municipal Government Guidance Fund. Relying on the management body of the Municipal Government Guidance Fund, establish a fund alliance with various private equity investment funds to achieve industry self-regulation and resource sharing.
15. Fund Risk Mitigation and Resolution. The Municipal Local Financial Regulatory Bureau shall actively lead, coordinate, and provide services for the development of the city’s private equity investment industry, explore the establishment of a local management system for the private financial services sector, and assist in financial risk early warning, prevention, and resolution. The Bureau shall dynamically monitor information regarding investment funds managed by private fund management institutions.
16. Leveraging the Initiative of Various Entities. All counties, districts, and development zones shall treat the development of private equity investment funds as a key priority. They shall designate dedicated working bodies, define clear objectives, optimize supporting functions, promote investment attraction and publicity, and provide high-quality services to effectively foster the growth of private equity investment funds.
VI. Supplementary Provisions
17. The policies listed in these Guidelines apply to private equity investment funds and private equity fund management institutions that are registered and established in Ma’anshan City, have completed tax registration, have their funds held in custody by financial institutions within the city, and have completed registration and filing procedures with the Asset Management Association of China. The institutions involved, as well as their legal representatives, actual controllers, and senior managers, must not have committed serious acts of dishonesty or violations during their operations.
18. The total value of benefits received by private equity funds, private equity fund management institutions, and their senior management under Articles 5–9 of these Guidelines shall, in principle, not exceed the value of their contributions to the local economy. Incentive payments shall, in principle, be disbursed once annually.
19. Funds eligible for incentive policies must commit to not relocating outside the city or withdrawing paid-in capital during their term of operation and to maintaining continuous operations; otherwise, they must return the incentive funds received. Investment incentives and loss subsidies for a single enterprise by a private equity fund shall not be claimed concurrently (the higher amount shall be paid); the scale of incentives for establishment and investment shall be calculated based on the actual amount received or invested, minus any capital contributions from the city’s governments at all levels and their affiliated state-owned enterprises.Private fund management institutions based outside the city may be eligible for the support policies outlined in Article 11.
20. The Municipal Local Financial Regulatory Bureau, in conjunction with the Municipal Finance Bureau, is responsible for supervising and inspecting the use of incentive funds. Funds and fund management institutions that fail to fulfill their commitments, submit falsified materials, obtain incentives through violations, or violate relevant laws, regulations, or contractual agreements after receiving incentives must return the incentive funds; those suspected of criminal activity will be referred to judicial authorities. Relevant departments, counties, districts, and development zones are responsible for recovering the funds and handling the relevant entities and responsible personnel in accordance with applicable regulations.
21. The disbursement of rewards and subsidies shall be implemented through a tiered responsibility system based on management authority and the principle of territorial jurisdiction. The portion of the reward corresponding to local contributions shall be fully borne by the respective counties, districts, and development zones. For other unspecified portions, the city and the counties/districts shall share the burden in accordance with the current fiscal system, with the Municipal Local Financial Regulatory Bureau taking the lead in managing the specific implementation. Where equity investment activities involve multiple counties, districts, or development zones, the investment reward funds shall be apportioned based on the actual amount of equity investment received.Where government investment funds provide concessions, performance evaluations shall be based on the actual situation prior to the disbursement of such concessions. In the event of adjustments to municipal-level policies, the relevant provisions of these regulations shall be adjusted accordingly.
22. These guidelines shall take effect upon issuance. Any specific issues arising during implementation shall be interpreted by the Municipal Local Financial Regulatory Bureau in conjunction with the Municipal Finance Bureau. Where previous relevant policies conflict with these guidelines, these guidelines shall prevail.
Office of the Ma'anshan Municipal People's Government
December 1, 2021
