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In Depth Analysis of Chinese Government Guided Funds: Based on the Comparison of Scottish Co-investment Fund

Received: 26 September 2021     Accepted: 15 October 2021     Published: 21 October 2021
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Abstract

As the main policy tool of our government to promote entrepreneurship and innovation and support the development of scientific and technological small and medium-sized enterprises, it has been nearly 15 years since the large-scale implementation in 2008. The introduction and implementation of the guiding fund policy has significantly activated the investment and financing activities of the venture capital industry, expanded the capital supply and investment of the industry, and played a better guiding effect on social capital. However, in recent years, while the new government guidance fund in China has cooled down year by year, there is a problem of insufficient actual investment of a large number of government funds. Behind it reflects many difficulties and contradictions in the actual operation of the guidance fund, which directly leads to the dormancy of some guidance funds and fails to give effective play to the guidance efficiency and support industrial development. In contrast, the Scottish joint investment fund has better solved the above problems in terms of public finance objectives and financial performance objectives, and its operation mode is worthy of our government's guidance fund for reference. By comparing the operation mode of Scottish joint investment fund, this paper puts forward that China should improve the contribution proportion of guidance fund by combining regional industrial advantages; Appropriately relax regional restrictions, broaden fund exit channels and other optimization strategies, and promote the government to guide the healthy operation of funds and the high-quality development of regional economy.

Published in International Journal of Economics, Finance and Management Sciences (Volume 9, Issue 5)
DOI 10.11648/j.ijefm.20210905.14
Page(s) 193-202
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Small and Medium-sized Enterprises, Government Guided Funds, Follow-up Investment, Investment Exit, Operation Mode

References
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[4] Cong Feifei, Li Yao, Gu Wenchen. Research on the guiding effect of state-owned venture capital on private capital [J]. Finance and trade economy, 2019, 40 (10): 95-110. Li Shanmin, Liang Xingyun. Do venture capital institutions respond to policies or cater to policies—— Investment perspective based on government guided fund incentive [J]. Securities market guide, 2020 (9): 14-23.
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[6] Yang Minli, Li Xinfang, Wu Yongheng. Research on the guidance effect of government venture capital guidance fund [J]. Scientific research management, 2014, 35 (11): 8-16.
[7] Shi Guoping, Dang Xinghua, Dong Jianwei. Can the guidance fund guide venture capital institutions to invest in early-stage and high-tech enterprises—— Empirical evaluation based on double difference model [J]. Scientific research, 2016, 34 (6): 822-832.
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  • APA Style

    Jiang Shiji. (2021). In Depth Analysis of Chinese Government Guided Funds: Based on the Comparison of Scottish Co-investment Fund. International Journal of Economics, Finance and Management Sciences, 9(5), 193-202. https://doi.org/10.11648/j.ijefm.20210905.14

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    ACS Style

    Jiang Shiji. In Depth Analysis of Chinese Government Guided Funds: Based on the Comparison of Scottish Co-investment Fund. Int. J. Econ. Finance Manag. Sci. 2021, 9(5), 193-202. doi: 10.11648/j.ijefm.20210905.14

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    AMA Style

    Jiang Shiji. In Depth Analysis of Chinese Government Guided Funds: Based on the Comparison of Scottish Co-investment Fund. Int J Econ Finance Manag Sci. 2021;9(5):193-202. doi: 10.11648/j.ijefm.20210905.14

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  • @article{10.11648/j.ijefm.20210905.14,
      author = {Jiang Shiji},
      title = {In Depth Analysis of Chinese Government Guided Funds: Based on the Comparison of Scottish Co-investment Fund},
      journal = {International Journal of Economics, Finance and Management Sciences},
      volume = {9},
      number = {5},
      pages = {193-202},
      doi = {10.11648/j.ijefm.20210905.14},
      url = {https://doi.org/10.11648/j.ijefm.20210905.14},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20210905.14},
      abstract = {As the main policy tool of our government to promote entrepreneurship and innovation and support the development of scientific and technological small and medium-sized enterprises, it has been nearly 15 years since the large-scale implementation in 2008. The introduction and implementation of the guiding fund policy has significantly activated the investment and financing activities of the venture capital industry, expanded the capital supply and investment of the industry, and played a better guiding effect on social capital. However, in recent years, while the new government guidance fund in China has cooled down year by year, there is a problem of insufficient actual investment of a large number of government funds. Behind it reflects many difficulties and contradictions in the actual operation of the guidance fund, which directly leads to the dormancy of some guidance funds and fails to give effective play to the guidance efficiency and support industrial development. In contrast, the Scottish joint investment fund has better solved the above problems in terms of public finance objectives and financial performance objectives, and its operation mode is worthy of our government's guidance fund for reference. By comparing the operation mode of Scottish joint investment fund, this paper puts forward that China should improve the contribution proportion of guidance fund by combining regional industrial advantages; Appropriately relax regional restrictions, broaden fund exit channels and other optimization strategies, and promote the government to guide the healthy operation of funds and the high-quality development of regional economy.},
     year = {2021}
    }
    

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  • TY  - JOUR
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    AU  - Jiang Shiji
    Y1  - 2021/10/21
    PY  - 2021
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    DO  - 10.11648/j.ijefm.20210905.14
    T2  - International Journal of Economics, Finance and Management Sciences
    JF  - International Journal of Economics, Finance and Management Sciences
    JO  - International Journal of Economics, Finance and Management Sciences
    SP  - 193
    EP  - 202
    PB  - Science Publishing Group
    SN  - 2326-9561
    UR  - https://doi.org/10.11648/j.ijefm.20210905.14
    AB  - As the main policy tool of our government to promote entrepreneurship and innovation and support the development of scientific and technological small and medium-sized enterprises, it has been nearly 15 years since the large-scale implementation in 2008. The introduction and implementation of the guiding fund policy has significantly activated the investment and financing activities of the venture capital industry, expanded the capital supply and investment of the industry, and played a better guiding effect on social capital. However, in recent years, while the new government guidance fund in China has cooled down year by year, there is a problem of insufficient actual investment of a large number of government funds. Behind it reflects many difficulties and contradictions in the actual operation of the guidance fund, which directly leads to the dormancy of some guidance funds and fails to give effective play to the guidance efficiency and support industrial development. In contrast, the Scottish joint investment fund has better solved the above problems in terms of public finance objectives and financial performance objectives, and its operation mode is worthy of our government's guidance fund for reference. By comparing the operation mode of Scottish joint investment fund, this paper puts forward that China should improve the contribution proportion of guidance fund by combining regional industrial advantages; Appropriately relax regional restrictions, broaden fund exit channels and other optimization strategies, and promote the government to guide the healthy operation of funds and the high-quality development of regional economy.
    VL  - 9
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Author Information
  • School of Business, Trade and Economic Management, Huzhou Vocational and Technical College, Huzhou, China

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