To accelerate the aggregation and development of high-quality private equity firms, fully leverage the pivotal role of capital markets in driving technological innovation and the transformation and upgrading of the real economy, better serve the two major themes of “improving people’s livelihoods and focusing on transformation,” support the creation of “one industrial system and four distinctive industrial clusters,” and promote high-quality economic and social development across the city, these policy measures are formulated in light of the city’s actual conditions.
I. Development Objectives
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will fully implement the major decisions and plans of the Party Central Committee and the State Council regarding financial services for the real economy. We will focus on targeted efforts in the supply side of finance to better leverage the functions of equity investment in value discovery, industrial development, technological innovation, and resource integration, thereby mobilizing more social capital and promoting a virtuous cycle of “technology–industry–finance.”By the end of 2025, the city aims to have attracted more than 50 equity investment institutions, with funds under management exceeding 60 billion yuan and registered fund scale exceeding 100 billion yuan. We will gradually establish a relatively comprehensive equity investment market system covering “fundraising, investment, management, and exit,” and strive to build a prominent equity investment hub with influence throughout the province.
II. Specific Measures
(1) Expanding Market-Oriented Fundraising Channels
1. Support the establishment of new equity investment institutions. For equity investment institutions (excluding fund-of-funds) newly established in the city, rewards will be granted based on the actual amount of capital raised. For institutions with actual capital raised between 10 million yuan and 200 million yuan (excluding 200 million yuan), a reward of 0.2% of the actual capital raised will be granted; for those with capital raised between 200 million yuan and 1 billion yuan (excluding 1 billion yuan), a reward of 0.3% of the actual capital raised will be granted;for amounts between 1 billion and 3 billion yuan (excluding 3 billion yuan), a reward of 0.5% of the actual funds raised will be granted; for amounts exceeding 3 billion yuan, the reward amount will be determined on a case-by-case basis. Upon the actual receipt of funds, 50% of the reward amount will be disbursed first; the remaining 50% will be disbursed once external investment reaches 50% (inclusive) of the total.
2. Diversification of fundraising methods is encouraged. Equity investment institutions are supported in broadening their fundraising channels through bond issuance, mergers and acquisitions, and the introduction of insurance capital, while also seeking investment from various national and provincial-level funds.
3. Support the establishment and development of Qualified Foreign Limited Partners (QFLPs). Encourage targeted investment promotion in countries and regions with developed private equity markets, facilitate the flow of capital, and promote the clustering and development of QFLPs. Strengthen cooperation with multi-currency private equity management institutions and gradually establish a mechanism for connecting with international capital.
(II) Supporting Private Equity Firms in Serving Industrial Development
4. Encourage investment in unlisted enterprises. Guide newly established local equity investment institutions to invest in local unlisted enterprises. For cumulative investments reaching 100 million yuan (or the equivalent in foreign currency) with a holding period of at least one year, a one-time reward of 1 million yuan will be granted, with a maximum cumulative reward of 10 million yuan per equity investment institution.
5. Encourage early-stage, small-scale, and technology-focused investments. For equity investment funds that invest in local start-up technology enterprises with an investment term of at least two years, a reward of up to 10% of the actual investment amount (limited to cash contributions) will be granted to the equity investment management firm. If the investee enterprises have affiliated relationships, they will be recognized as a single investment. The maximum reward per invested enterprise or project is 1 million yuan, and the cumulative annual reward for each equity investment management firm shall not exceed 5 million yuan.
6. Support for Attracting Industrial Projects. Equity investment management institutions are encouraged to attract enterprises within their ecosystem to establish operations in the city. For major projects—where target enterprises acquired or invested in by equity investment funds relocate to the city, commence operations, and achieve full production capacity, and which align with the city’s modern industrial system development direction—a one-time reward of up to 500,000 yuan will be granted to the equity investment management institution.
(3) Optimizing the Investment Mechanism and Management Model of Government Investment Funds
7. Fully leverage the guiding role of government investment fund contributions. Differentiated minimum required rates of return shall be established for industrial guidance funds and special development funds based on differences in fund risk, return preferences, and industry support needs. Under specified conditions, the minimum required rate of return for contributions from municipal government investment funds may be appropriately reduced, and excess returns may be appropriately shared with other investors.
8. Strengthen the professional management of government investment funds. Optimize the selection mechanism for fund managers by evaluating factors such as policy compliance, operational management, and fundraising capabilities to select the most qualified candidates. Intensify cooperation with national and provincial-level funds as well as leading institutions to attract more development resources to Taizhou.
9. Moderately relax the criteria for recognizing reinvestments in local enterprises by government investment funds and their portfolio funds. The following scenarios shall all be recognized as reinvestments in local enterprises: direct investments in local enterprises; new investments in local enterprises or investments to facilitate the establishment of enterprises introduced to the city by other funds under the management of the fund manager (including sub-fund managers invested in by the fund of funds); and new investments in local enterprises by management companies or funds under the same actual control as the fund manager.
(IV) Diversify Equity Investment Exit Channels
10. Support the innovative development of the equity transfer fund market. Encourage the establishment of equity transfer funds in the city and their registration with the Asset Management Association of China. Accelerate collaboration with leading institutions in the equity transfer fund sector, explore the establishment of a fund share valuation system, and provide basic trading services. Encourage local authorities to support limited partners of equity investment institutions in obtaining “income from equity investments.”
11. Facilitate equity investment exit channels. Fully leverage the targeted cultivation and service functions of platforms such as the Shanghai Stock Exchange’s Capital Market Service Base for Taizhou and the Shenzhen Stock Exchange’s (Taizhou) Cultivation Base for Listing of Innovative and Entrepreneurial Enterprises in the Healthcare Industry. Accelerate the listing process for portfolio companies of equity investment institutions and broaden equity investment exit channels through listing and over-the-counter trading. Encourage equity investment exits via mergers and acquisitions (M&A), and support the establishment of M&A funds by social capital through market-oriented mechanisms.
(V) Strengthening Resource Aggregation and Mechanism Guarantees
12. Improve routine coordination mechanisms. Continue to organize “Face-to-Face with Venture Capital Institutions” financing roadshows, and encourage localities to build project roadshow platforms that leverage their unique strengths and advantages. Establish information-sharing mechanisms among local governments, equity investment institutions, and enterprises. Regularly review the pool of science and technology innovation enterprises under cultivation to provide equity investment institutions with a dynamically updated database of investment targets.Encourage fund managers to report on enterprises in which they have invested within the city, establish a project database of portfolio companies, and promote targeted tracking and on-site services by relevant departments and financial institutions to provide precise support for portfolio companies in financing, market expansion, shareholding restructuring, and going public.
13. Create Equity Investment Clusters.Focus on building a model comprehensive equity investment cluster centered on the Taizhou Financial Plaza, striving to attract leading domestic and international equity investment institutions and high-end financial resources to establish operations there. Support eligible cities (districts) in planning and constructing equity investment clusters tailored to their regional characteristics and industrial strengths. Support eligible clusters and service bases in applying for designation as Provincial Venture Capital Cluster Development Demonstration Zones and Comprehensive Venture Capital Service Bases, providing one-time subsidies of up to 1 million yuan and 500,000 yuan, respectively, for successful applications.
14. Strengthen Incentives and Support for Professional Talent. Establish the Taizhou Equity Investment Talent Award and create an evaluation mechanism, with selections generally held once a year, limited to no more than five recipients per round. Recognized equity investment professionals may receive cumulative awards of up to 400,000 yuan per person. Support senior management of local equity investment institutions in applying for the “Fengcheng Talent Card.”
15. Optimize the market service environment. Explore the establishment of a “whitelist” for equity investment institutions, streamline registration procedures for the establishment and modification of market entities by such institutions based on classification, and improve processing efficiency. Strengthen information sharing among market supervision, administrative approval, and financial regulatory authorities regarding private fund registration; establish a tiered and categorized supervision and information disclosure mechanism for private funds; and improve the private fund custody system.
16. Improve the management system framework. Coordinate policy requirements in areas such as state-owned asset management and audit supervision with the practical realities of market-oriented operations in state-owned enterprises, and optimize institutional designs regarding risk tolerance, transaction pricing, performance evaluation, and investment loss assessment. For investment funds in which municipal-level fiscal authorities and state-owned enterprises participate, adhere to the principles of protecting innovation, encouraging exploration, tolerating mistakes, and correcting deviations. Establish mechanisms for due diligence exemption from liability and tolerance of losses with corrective measures, and do not use normal investment risks as grounds for accountability.For cases where no personal gain was sought, investment decision-making and post-investment management procedures were strictly followed, no violations of relevant systems or business processes occurred, and the expected objectives were not achieved or losses were incurred, no negative evaluation shall be given to the relevant participants.
III. Other Matters
The term “equity investment institutions” as used in these policy measures includes equity investment funds and fund management institutions, where: an equity investment fund refers to a non-securities investment enterprise that is legally registered, established through private fundraising from specific investors, and invests in the equity of non-publicly traded enterprises while providing value-added services; a fund management institution refers to an enterprise that is legally registered and engaged in the initiation, establishment, and entrusted management of equity investment funds.
Equity investment institutions eligible for these policy measures must be registered and filed with the China Securities Investment Fund Association or relevant government departments in accordance with regulations. When applying for rewards, they must commit to maintaining their principal place of business and investment activities within this municipality and not relocating during the term of the policy. If they relocate, they must return the relevant reward funds and pay interest calculated at the current Loan Market Quote Rate.
Enterprises and individuals receiving rewards under these policy measures that fail to fulfill their commitments or fraudulently obtain rewards through means such as falsification shall be ordered to return the reward funds; the dishonest conduct of the relevant individuals, as well as the principal responsible persons and directly responsible persons of the reporting enterprises, shall be recorded in their personal credit records; where criminal suspicion exists, the case shall be transferred to judicial authorities for handling in accordance with the law.
When calculating rewards under these policy measures based on raised funds or actual investment amounts, contributions from municipal government investment funds or state-owned enterprises at all levels shall be deducted.
In accordance with the principle of “choosing the higher amount and avoiding duplication,” the rewards and subsidies under these policy measures shall not be enjoyed concurrently with other support policies at the national, provincial, or municipal levels.
The reward funds covered by these policy measures shall be borne by the municipal government and municipal (district) governments in accordance with the principle of aligning fiscal responsibilities with expenditure obligations. The Municipal Local Financial Regulatory Bureau shall, in conjunction with the Municipal Finance Bureau, the Municipal Science and Technology Bureau, the Municipal Industry and Information Technology Bureau, and other relevant departments, formulate supporting implementation rules.
These policy measures shall take effect on the date of issuance and remain valid until December 31, 2025. Jingjiang City, Taixing City, and Xinghua City may implement these measures by reference.
