PE is expected to broaden fundraising channels and receive more policy support in the future
Encouraging private capital and supporting small and medium-sized enterprises (SMEs) were important topics discussed at this year's Two Sessions. Private equity (PE) investment, a crucial investment channel for private capital, also plays a positive role in the development of SMEs and is expected to receive more policy support in the future.
According to CVSource, a financial data product from ChinaVenture, a subsidiary of the China Venture Capital Association, fundraising in China's VC/PE market cooled significantly in 2011. In the first two months of 2012, fundraising activity dropped sharply.
Regarding the challenges faced by PE fundraising, Guo Guangchang, a deputy to the National People's Congress and chairman of Fosun Group, proposed in his proposal to broaden the funding sources for the private equity investment industry, gradually establishing a diversified funding system that includes government, financial institutions, foreign capital, insurance funds, social security funds, corporate pension funds, corporate funds, wealthy individuals, and idle social funds; Yang Chao, a member of the National Committee of the Chinese People's Political Consultative Conference and former president of China Life Insurance Group, suggested relaxing the threshold for insurance funds to invest in equity and real estate; Ma Weihua, a member of the National Committee of the Chinese People's Political Consultative Conference and president of China Merchants Bank, suggested allowing commercial banks to invest in VC/PE or provide loans to VC/PE.
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