The General Office of the State Council recently issued the “Guiding Opinions on Promoting High-Quality Development of Government Investment Funds”. Standardize fund exit management. Research and formulate exit policy guidelines for government investment funds, and improve exit policies for different types of funds. The fund manager shall establish a fund withdrawal management system and formulate an exit plan. Government investment funds shall determine the withdrawal period scientifically and reasonably, and specify exit conditions in the statute or partnership agreement. When government funding is withdrawn, it shall be withdrawn in accordance with the conditions agreed in the articles of association or partnership agreement; if there is no agreement, the evaluation shall be carried out according to law and regulations, and the transfer price shall be determined by market-based methods. Broaden fund exit channels. Promote the interface of regional equity market rules and the unification of standards. Encourage the development of private equity secondary market funds, M&A funds, etc. Improve the multi-level capital market system, enhance the ability of the New Third Board and regional equity markets to serve equity investment, and broaden exit channels for government investment funds. Improve the fund withdrawal mechanism. Government investment funds shall fairly protect the interests of all funders in terms of income distribution, loss sharing, etc., and protect the legitimate rights and interests of social capital. Explore simplified project exit processes, optimize government investment fund share transfer business processes and pricing mechanisms, promote the improvement of the government investment fund evaluation system, and establish a smoother exit mechanism.

The General Office of the State Council recently issued the “Guiding Opinions on Promoting High-Quality Development of Government Investment Funds”. Standardize fund exit management. Research and formulate exit policy guidelines for government investment funds, and improve exit policies for different types of funds. The fund manager shall establish a fund withdrawal management system and formulate an exit plan. Government investment funds shall determine the withdrawal period scientifically and reasonably, and specify exit conditions in the statute or partnership agreement. When government funding is withdrawn, it shall be withdrawn in accordance with the conditions agreed in the articles of association or partnership agreement; if there is no agreement, the evaluation shall be carried out according to law and regulations, and the transfer price shall be determined by market-based methods. Broaden fund exit channels. Promote the interface of regional equity market rules and the unification of standards. Encourage the development of private equity secondary market funds, M&A funds, etc. Improve the multi-level capital market system, enhance the ability of the New Third Board and regional equity markets to serve equity investment, and broaden exit channels for government investment funds. Improve the fund withdrawal mechanism. Government investment funds shall fairly protect the interests of all funders in terms of income distribution, loss sharing, etc., and protect the legitimate rights and interests of social capital. Explore simplified project exit processes, optimize government investment fund share transfer business processes and pricing mechanisms, promote the improvement of the government investment fund evaluation system, and establish a smoother exit mechanism.