Study On Government-Dominated Industrial Investment Fund

Industrial investment fund is a kind of collective investment system that invest in private companies (mostly via equity investment) of predetermined industries or areas and then manage the investments, it can be sorted as private fund (private equity). Since Bohai industrial investment fund founded, industrial investment funds have been growing fast, especially in recent years, nowadays there are so many industrial investment funds in China, and the kind of government-dominated funds are not that few either.China has moved to the stage of the "Economic New Normal" nowadays. While economic growth rate declining, economic structure requiring improvements, the engines for economic development changing from factor-driven and investment-driven to innovation-driven, China is also facing the issue of "Supply-side Structural Reform". While in the transform period, now China need to develop High-tech industry, new energy industry and new bio-tech medicine industry and so on, optimize and upgrade manufacturing industry, eliminate outdated capacity, realize the adjustment and upgrade of industrial structure, and revise the structure of the supply-side to create new power for sustainable economic develop.Given the "Economic New Normal" and "Supply-side Reform" China now facing, and the reform demand of China’s industrial structure adjustment and optimization, the government-dominated investment fund can be used as a really suitable tool. At present, governments of different regions and levels all around China are in a passion to set up government-dominated industrial funds and government leading funds, this phenomenon can be deemed as a proof of the value and usefulness of government-dominated industrial fund in a way.Based on all above, this paper study on government-dominated investment fund, by focusing on the general characteristics of industrial investment funds in China, the basics of the government-dominated investment funds and its differences with non-government-dominated funds, and international experiences to do a relatively comprehensive study on government-dominated investment funds in China. Considering its new features and then doing summarizations and analyses, then give some suggestions on how to develop and make use of government-dominated investment funds to assist the transform and upgrade of the whole industrial structure and the sustainable development of economy, and also the supply-side structural reform.This paper is structured to have five chapters, the frameworks and contents are as following:Chapter one is foreword. It mainly concerns the background, meaning, reference papers domestic and abroad, main contents and methods in research, and the innovations and insufficiencies.Chapter two is the theory analysis relevant of government-dominated industrial investment funds, and the necessities to develop them. Here it firstly introduced basic concepts, characteristics and forms of the fund, and then some relevant economic theories. After that, it introduced what the government-dominated industrial investment fund is, and then clarified the characteristics of, and necessities to exist and develop of it by comparing with the government leading fund.Chapter three is about the actual practices and problems of the government-dominated industrial investment funds. It mainly introduced the history and present conditions of the the funds, picked certain angles to pay special attentions to, and offered opinions on the insufficiencies of present practices of the funds.Chapter four is about foreign experiences. The relevant cases in U.S. and Israel were picked to be introduced and analyzed here. And it also summarized useful experiences for China here.Chapter five is about the thinking and suggestions for the government-dominated industrial investment fund. It offered some opinions and suggestions on how government can develop the industrial investment fund. And it gave some advices on how to use the government-dominated industrial investment fund to support the supply-side structural reform.