Beijing will boost VC funding for key sectors

Significance

Beijing sees VC as key to its high-tech ambitions, but difficulties with realising initial public offerings (IPOs) and other exit options, as well as tense US ties, have depressed investment. Policymakers intend to drive more capital towards long-term investments.

Impacts

• One key goal will be investor confidence, particularly in relation to monetising investments.
• The central policy direction is clear; more implementation detail will come from individual regulators and local governments.
• China will court Middle Eastern and European investors in particular.