China’s Securities Regulator Flags Greater Support for Private Equity and Venture Capital in Shenzhen’s Tech Sector

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A senior official from the China Securities Regulatory Commission (CSRC) has reiterated its comment to support for private equity financing and venture capital investment in the southern tech hub of Shenzhen.

Fang Xinghai (方星海), deputy-chair of CSRC, said that the regulator would “continue to actively support Shenzhen in the acceleration of innovation exploration; expediting the high-quality development of the venture capital sector… and further improving systems and mechanisms for the capital market to support tech innovation.”

Fang made the remarks on 9 November at the opening ceremony for “Shenzhen Venture Capital Day” (深圳创投日) held at the Shenzhen Stock Exchange Science and Technology Centre.

“High-level science and technology is the strategic support for national development,” Fang said. “Under new conditions, the importance of innovation to China achieving modernisation has become even more pronounced.

“Private equity and venture capital are key channels of direct financing, and an important vessel for the formation of innovation capital…they play a key driving role in tech innovation.

“At present, China’s private equity and venture capital funds have already leaped to the fore internationally in terms of number and scale, and continue to heighten the level of capital invested in semi-conductors, computer applications, biopharmaceuticals and clean energy.

“Over 80% of enterprises on the Science and Technology Innovation Board and 60% of enterprises on the Growth Enterprises Market Board obtained private equity or venture capital investment prior to their listing.

“Shenzhen, as one of the high grounds for the concentration of private equity and venture capital investment, is at the national forefront in terms of capital under management and investment scale, supporting the development and strengthening of a large cohort of innovative tech companies, and vigorously expediting the transformation and upgrade of regional industry.”