By Chen Ning & Song Yicheng, Research Team on “ The Proper Role of Government Investment Funds in Promoting Transformation and Upgrading in China’s Economy”, Financial Research Institute , DRC

Research Report, Special Issue, No.62, 2019 (Total 1690) 2019-8-16

Abstract: In the international communities, governmental investment funds are mainly established for the aim of supporting industrial development, especially for innovating industrial development. Their founding and operating experience may provide certain reference for China’s own governmental investment funds. The governmental investment funds of various countries or regions have their own characteristics and may differ in operating backgrounds, approaches and effects. This report firstly analyzes seven governmental investment funds of important countries and regions , and sums up their basic conditions and characteristics respectively. Based on the analysis, this report summarizes the experience of the establishment and operation of foreign governmental investment funds and their enlightenments for China from the angles of establishing fund of funds (FoF), attracting social capital and controlling risks. Other enlightenments for China include clearly defining the positioning of the funds, observing market-based principles, selecting the suitable operation mode based on our national conditions and emphasizing institutional building. We can refer to their experience for the sustainable development of China’s governmental investment funds and realize our goals of assisting industrial development and other policy targets.

Key words: governmental investment funds, operation system, international experience