To further optimize the development environment for the fund industry, attract high-quality fund firms to establish operations in Kunming, promote the large-scale and clustered development of the fund industry in Kunming, support industrial transformation and upgrading, and accelerate the achievement of high-quality economic development, the following measures have been formulated:

I. Supporting the Clustered Development of Funds

(1) Implementation of Settlement Incentives for Fund Institutions. For newly established or newly relocated public fund management institutions, a one-time incentive of 1% of their paid-in capital will be provided, with a maximum cap of 50 million yuan. For newly registered or newly relocated independent fund sales institutions, those with an initial paid-in capital of 50 million yuan (inclusive) or more but less than 100 million yuan will receive a one-time incentive of 2 million yuan;and a one-time grant of 5 million yuan for those with an initial paid-in registered capital of 100 million yuan or more. For private securities investment funds that have been in operation for more than one year, have completed registration with the Asset Management Association of China, manage assets of 1 billion yuan or more, and align with the layout of Kunming’s special financial functional zones, a one-time grant of up to 3 million yuan will be provided to their fund management institutions based on 0.3‰ of the actual raised capital (calculated as of the end of the previous year).[Responsible Units: Municipal Financial Affairs Office, Municipal Finance Bureau; People’s Governments of all counties (cities) and districts, and Administrative Committees of Development (Resort) Zones (hereinafter referred to as “counties and districts”) in accordance with their respective responsibilities]

(2) Optimizing Spatial Support and Talent Incentives. For fund management institutions that align with the layout of Kunming’s Specialized Financial Functional Zones, those leasing office space for their own use shall receive a subsidy equivalent to 50% of the actual rent paid, provided for three consecutive years, with a cumulative maximum subsidy of 3 million yuan. Institutions purchasing office space for their own use for the first time and committing not to sell it externally within five years shall receive a one-time subsidy equivalent to 10% of the actual purchase cost, with a maximum of 5 million yuan.Specifically, private securities investment management institutions must have raised actual capital of 50 million yuan or more; private equity investment management institutions must have made cumulative investments of 200 million yuan or more in enterprises in Kunming. For senior executives of fund institutions that align with the layout of Kunming’s Specialized Financial Functional Zones, awards and subsidies will be granted based on their contributions to the local economy at the municipal and county levels: 80% of the annual local economic contribution for the first three years, and 40% of the annual local economic contribution for the following two years.(Responsible Units: Municipal Talent Office, Municipal Human Resources and Social Security Bureau, Municipal Taxation Bureau, Municipal Finance Bureau, Municipal Financial Affairs Office; all counties and districts shall act in accordance with their respective responsibilities)

(3) Strengthen operational support. Fund management institutions that have been in operation for more than one year, have completed registration with the Asset Management Association of China, and align with the layout of Kunming’s Specialized Financial Functional Zones will receive a 50% incentive based on the incremental portion of their local economic contributions at the municipal and county levels from the previous year. This incentive will be provided for five consecutive years. (Responsible Units: Municipal Taxation Bureau, Municipal Finance Bureau, Municipal Financial Affairs Office; counties and districts to act according to their respective responsibilities)

II. Encouraging Private Equity Funds to Expand Investments

(4) Leverage the guiding role of industrial investment funds. Establish the Kunming Industrial Investment Fund to guide social capital in jointly establishing various sub-funds for key industries, focusing on the development of Kunming’s priority industries.For industry-specific sub-funds that receive capital contributions from the Industrial Investment Fund after the implementation of these measures, if the reinvestment ratio reaches 1.5 times (inclusive), 50% of the returns on the Industrial Investment Fund’s capital contribution (after deducting funding costs) may be shared with the fund management institution; if the reinvestment ratio reaches 2 times (inclusive) or higher, 80% of the returns on the Industrial Investment Fund’s capital contribution (after deducting funding costs) may be shared with the fund management institution, with specific terms to be agreed upon by the Industrial Investment Fund management institution.Reinvestment incentives shall be disbursed in accordance with established procedures upon the liquidation of the private equity fund, following confirmation by a third-party intermediary. (Responsible Units: Municipal Financial Affairs Office, Municipal Finance Bureau, Municipal State-owned Assets Supervision and Administration Commission, Kunming Industrial Investment Company; counties and districts shall act in accordance with their respective responsibilities)

(5) Encouraging Private Equity Investment Funds to Invest in Kunming. Private equity investment funds that make actual investments in the current year in non-listed enterprises within the Kunming region that align with Kunming’s key industrial development priorities shall be granted a one-time subsidy of 1 million yuan for every 100 million yuan (or equivalent in foreign currency) of cumulative investment, provided the investment term is one year or longer. The maximum subsidy amount shall not exceed 20 million yuan. (Responsible Units: Municipal Financial Affairs Office, Municipal Finance Bureau; counties and districts shall act according to their respective responsibilities)

(6) Encourage private equity investment funds to invest early, in small enterprises, and in technology. After a private equity investment fund has completed an investment in a start-up technology enterprise in Kunming for a full year, its management entity shall be granted a subsidy of up to 10% of the actual investment amount (limited to monetary contributions). The subsidy for a single investment project shall not exceed 1 million yuan, and the annual subsidy shall not exceed 5 million yuan.(Start-up enterprises shall be identified in accordance with the standards set forth in Announcement No. 6 of 2022 issued by the Ministry of Finance and the State Taxation Administration.) (Responsible units: Municipal Financial Affairs Office, Municipal Finance Bureau, Municipal Science and Technology Bureau; counties and districts shall act in accordance with their respective responsibilities)

(7) Support for the Industrial Chain Strengthening Project. Private equity fund management institutions that introduce projects aligned with Kunming’s key industrial development priorities through project resource restructuring, mergers, and acquisitions (excluding projects where government support is explicitly stipulated in existing agreements or those subject to “case-by-case” review) shall be granted a subsidy of 2% of the actual investment amount of the implemented project, with a maximum subsidy of 20 million yuan for the fund management institution.(Responsible Units: Municipal Financial Affairs Office, Municipal Finance Bureau, Municipal Development and Reform Commission, Municipal Investment Promotion Bureau; counties and districts shall act according to their respective responsibilities)

III. Optimizing Supporting Services for Funds

(8) Diversify Investment Exit Channels. Support innovation and development in the S-fund sector, accelerate the introduction of professional third-party service providers, explore the establishment of a fund share valuation system, and provide basic transaction services. Relying on the Yunnan Equity Exchange Center, establish a platform for the transfer of equity investment fund shares.Accelerate the listing process for Kunming enterprises, support the connection between enterprises in Kunming’s pool of potential listed companies and fund management institutions, and open channels for the commercialization of industrial chain innovation outcomes. Encourage equity investment to achieve exit through mergers and acquisitions (M&A), and support private capital in establishing M&A funds through market-oriented approaches. (Responsible Units: Municipal Financial Affairs Office, Municipal Bureau of Industry and Information Technology, Municipal Science and Technology Bureau; counties and districts to act according to their respective responsibilities)

(9) Broaden market-based fundraising channels. Support qualified institutions in conducting family office-type businesses, and encourage and guide family wealth to be invested in Kunming’s private equity investment funds. Encourage financial institutions based in Kunming to collaborate with equity investment institutions on innovative business models such as investment-loan linkage, investment-bond linkage, and investment-insurance linkage, and explore pilot programs for venture capital-type loans by commercial banks. Actively seek investment from national-level funds. (Responsible units: Municipal Financial Affairs Office; counties and districts according to their respective responsibilities)

(10) Optimize government service models. Further improve the investment environment for private equity funds, guide the clustering of private equity fund management institutions, and establish “one-stop” service platforms in these clusters. Open integrated “one-stop” service windows that combine functions and services related to market regulation, administrative approvals, taxation, banking, and industry associations to provide high-quality, comprehensive, full-lifecycle services for resident funds—covering everything from registration, account opening, and filing to investment, changes, and exit, as well as policy consultation and reporting.Municipal and county-level governments and relevant departments will collaborate with private fund management institutions to establish a regular mechanism for effectively matching fund projects, providing refined services for fund investments. (Responsible Units: Municipal Bureau of Government Services, Municipal Market Regulation Bureau, Municipal Financial Office; each county and district according to their respective responsibilities)

(11) Improve the intermediary service system. Further strengthen the role of intermediary service providers in legal, financial, consulting, evaluation, custody, and guarantee services. Support these providers in offering fund management institutions services such as due diligence, project evaluation, technical brokerage, information services, and financial and legal consulting, and gradually improve the intermediary service system. (Responsible units: Municipal Financial Affairs Office; counties and districts according to their respective responsibilities)

IV. Other Matters

(12) The scope of institutions covered by these measures refers to public fund management institutions established with approval from the China Securities Regulatory Commission, or private equity investment funds (including industrial investment, venture capital, and fund-of-funds), private equity investment fund management institutions, and private securities investment fund management institutions that are registered, have tax administration relationships, and are subject to statistical reporting within the administrative area of Kunming City.The rewards under these measures shall be borne by the municipal and county-level governments respectively, based on their respective economic contributions. The Central Yunnan New Area may implement these measures by reference, with funding borne by the New Area itself.

(13) All types of public fund management institutions, private securities investment fund management institutions, private equity investment funds, and private equity investment fund management institutions in Kunming City applying for rewards or subsidies under these Measures shall commit to continuously and normally conducting investment and business operations. If they fail to fulfill their commitment obligations or use fraudulent means to obtain preferential policies, they shall be ordered to return any rewards or subsidies already received.

(14) For provisions in Articles (5), (6), and (7) of these Measures, where a private equity investment fund is capitalized by the Kunming Industrial Investment Fund, Kunming state-owned enterprises, or municipal and district-level guiding funds in which state-owned capital participates, the amount of such capital contributions shall be deducted when calculating the reward amount. Rewards under Article (4) of these Measures shall not be duplicated with those under Articles (5), (6), and (7).The incentive policies under these Measures and other municipal-level incentive policies shall be implemented in accordance with the principle of selecting the higher amount and avoiding duplication; relevant applicants may choose one of them to apply for based on actual circumstances.

(15) These Measures shall take effect on December 12, 2022, and remain valid for three years.