Recently, the National Development and Reform Commission ("NDRC") has issued the Interim Measures for the Administration of Government-sponsored Industry Investment Funds (the "Measures"), which will enter into force as of April 1, 2017.
The Measures, on the basis of a clear definition of "government-sponsored industry investment funds", further provide that government-sponsored industry investment funds may be established in various organizational forms, such as a corporation, partnership and a contractual form, and that a variety of means, such as the equity participation in funds, joint investment, financing guarantee, and a mode under which the governments make capital contributions and surrender appropriate part of profits, can be made use of in an integrated manner to bring the functions of funds into full play. According to the Measures, government investors shall not engage in daily management of funds. The part of social capital in the government-sponsored industry investment funds shall be raised through private placement. A manager of government-sponsored industry investment funds shall satisfy five requirements, one of which is that the manager shall be a corporation or partnership legally established in the Chinese Mainland and have a minimum paid-up capital of CNY10 million. Furthermore, the Measures specify the investment operation and termination, performance assessment, industry credit building, etc. with regard to the government-sponsored industry investment funds.