Study On The Relevant Issues Of Establishment Of Weifang Binhai Industry Investment Fund

A concept unique to China, Industrial investment fund, often called Venture Capital and Private Equity in foreign countries, generally refers to an unlisted equity or quasi equity investment to high growth potential companies. It participates in invested enterprise management in order to achieve capital appreciation through equity transfer after the enterprises develop maturely.Industry Investment Fund is a realistic business approach not only solves the financing difficulties, but also solves the rapid development of non-listed enterprises financing. In the context of the current monetary policy, banks will further shrink the size of credit and improve credit standard. Many enterprises, especially medium-sized and small enterprises, get less and less support access to credit, so business financing becomes the "bottleneck" constraint to sustainable economic development. Investment fund industry can play its intermediary role in the form of direct equity investment in unlisted companies to provide financing, to reduce the debt ratio and to improve the business environment, which is the current situation to broaden financing channels for enterprises an ideal choice.From the point of view of a legal environment, Establishment of Foreign Investment in Chinese Fund Management Industry Approach, issued by the People's Bank of China and approved by State Council in September 1995, is by far the main basis for industrial investment funds by the Chinese-funded organizations set up outside. National Development and Reform Commission began discussions of the setting up of industrial investment Fund in China in 1999. Although Interim Measures for Industrial Investment Fund Management drafted In November 2001 has been no introduction, the content will also be the basis for Equity Investment Fund Management Approach and Pilot Region Equity Investment Firm Management Approach in the future. The new Law, Securities Law and Partnership Act and other amendments to the law, also provide a legal basis and framework for the establishment and operation of the domestic industrial investment funds, thus making investment funds industry a clear legal status.Located in northern Weifang, southern coast of Laizhou Bay in Bohai Sea, and the conjunction connecting Bohai Economic Rim and yellow River Delta, Weifang Binhai Economic and Technological Development Zone(BETDZ) is a national-level economic and technological development zone. At present, a design of "One City, Four Parks" to fully advance the construction of new Binhai City are completed, seven new high-end industries are fast fostered to accelerate build a modern, international Bnihai with perfect and fully functional facilities, developed industries, ecological environment, livable life, full of innovation and vitality. Construction of the New City and development of the local startups can't carry out without financial support. Industry investment fund could be established on the basis of government funds and land resources, by attracting the Pearl River Delta, Yangtze River Delta and developed areas of the surplus of foreign capital to the development zone, thus promoting good and fast development of local economy and society.Given the above, Administration Committee of Weifang Binhai Economic and Technological Development Zone and the Section Macro Ventures Group achieved the common negotiation to propose a joint venture Industrial Investment Fund Management Cop. Lit. in Weifang Binhai Economic and Technological Development Zone. The company set up Weifang Binhai industrial investment Fund as the leading industrial investment Fund, including three sub-funds such as the new energy technology industry investment funds, investment funds and technology of modern services venture capital fund.Previously, there were 10 pilot industrial investment funds specially approved by the National Development and Reform Commission to the State Council, including the Bohai Industrial Investment Fund, the Guangdong Nuclear Power and New Energy Fund, Northeast Industrial equipment industry investment funds. Since 2008, Development and Reform Commission has made the management of industrial investment funds from the "audit" system to "record system". The number of market-oriented industrial investment fund in the records of National Development and Reform Commission has reached 22, such as CDH, Chinese culture, in Merchants and other subjects.2010, the National Development and Reform Commission has approved to build Chongqing logistics industrial investment funds in Chongqing and the Yellow River Delta investment fund in Shandong. Also during the thesis writing, Shandong Province also issued On the Promotion of Equity Investment and Development, and On the Strengthening of Company Filing of Equity Investment Management. All those provide a reference and methods of experience for the setting up of Weifang Binhai Industrial Investment Fund.Due to various reasons, the next step to carry out the coastal industry specific funds may be more lengthy and complex. However, as China's economic development investment fund industry is an urgent need, the National Development and Reform Commission and the Commission and other regulatory authorities are accelerating the introduction of the industrial investment fund management practices, and state and local governments have also introduced to promote industrial investment fund development and innovation policy advice from their point of view. Therefore, we believe that in the near future, Weifang Binhai Industry Investment Fund will soon solve the problems and play its role in the construction of the coastal city.This paper aims to analysis the necessity, feasibility and related issues of the establishment of Weifang Binhai industrial investment fund, by reviewing the theory of industrial investment funds in first chapter, analysising the basis on setting up domestic industrial investment fund in Chapter Two, and studying planning and development of Weifang Binhai Economic Development Zone.