After nine months of preparation, Chinese authorities officially announced on Friday, December 27, the launch of the National Venture Capital Guidance Fund, establishing a 20-year operational term. The first batch of three regional funds has already been set up in the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the Guangdong-Hong Kong-Macao Greater Bay Area, each expected to exceed RMB 50 billion (approximately SGD 9.1 billion) in total scale.

During the National People's Congress and Chinese People's Political Consultative Conference ("Two Sessions") in March this year, Zheng Shanjie, head of the National Development and Reform Commission (NDRC), announced that China would continue to significantly increase investment in scientific and technological innovation by establishing the National Venture Capital Guidance Fund (hereinafter referred to as the "Guidance Fund"). The fund aims to mobilize nearly RMB 1 trillion from local governments and social capital, channeling investments into technology-driven enterprises through market-oriented mechanisms.

According to the NDRC’s official website, the Guidance Fund’s launch ceremony was held in Beijing on Friday. The first three regional funds have already signed a series of letters of intent for sub-funds and direct investment projects in fields including integrated circuits, quantum technology, biopharmaceuticals, brain-computer interfaces, and aerospace.

At the press conference held the same day, Bai Jingyu, Director-General of the NDRC’s Department of Innovation and High-Tech Development, described the Guidance Fund as an “early-stage fund, patient capital, market-oriented fund, and benchmark fund.” He explained that the fund has a 20-year lifespan—comprising a 10-year investment period followed by a 10-year exit period—“to provide long-term capital support for enterprises through extended investment horizons and offer greater development space through more flexible exit timelines.”

Bai added that the Guidance Fund adheres to the principle of “investing early, investing small, investing long-term, and investing in hard tech,” primarily targeting seed-stage and start-up companies. For small enterprises, the fund requires a pre-investment valuation below RMB 5 billion, with individual investments capped at RMB 500 million.

He noted that the 20-year term breaks the traditional venture capital and private equity fund lifecycle limit of seven to ten years. For sectors with long return cycles—such as innovative pharmaceuticals—the Guidance Fund further relaxes investment time constraints. Additionally, it focuses on strategic emerging industries and future-oriented sectors outlined in the draft recommendations for China’s 15th Five-Year Plan (2026–2030), supporting key generic technology commercialization projects and investing in enterprises undertaking national missions and achieving major breakthroughs.

Huo Fupeng, Director of the NDRC’s Center for Innovation-Driven Development and concurrently Chairman of the National Venture Capital Guidance Fund Co., Ltd., explained at the same press event that the Guidance Fund adopts a three-tier structure: “Fund Company – Regional Funds – Sub-Funds.” At the top level, it operates under a corporate structure as the National Venture Capital Guidance Fund Co., Ltd. At the regional level, the fund company participates as a limited partner to establish limited partnerships in the Beijing-Tianjin-Hebei region, Yangtze River Delta, and Guangdong-Hong Kong-Macao Greater Bay Area—areas characterized by dense concentrations of scientific, educational, and talent resources, vibrant innovation ecosystems, and strong leadership roles.

Huo revealed that the three regional venture capital guidance funds for Beijing-Tianjin-Hebei, Yangtze River Delta, and Guangdong-Hong Kong-Macao Greater Bay Area completed their business registrations on Monday, December 22, and each is projected to surpass RMB 50 billion in scale.

Regarding funding sources, Guo Fangming, Director-General of the Ministry of Finance’s Department of Economic Construction, stated that the Guidance Fund is capitalized using ultra-long-term special treasury bonds. The central government will contribute RMB 100 billion at the national level, while actively encouraging social capital participation at the regional and sub-fund levels.

The WeChat public account “LP Insight” commented that the 20-year term represents a key institutional innovation of the Guidance Fund, completely breaking free from the conventional 10-year horizon typical of venture capital (VC) and private equity (PE) funds.

However, Shen Meng, Executive Director of Chanson Capital, emphasized in an interview with Lianhe Zaobao that while the 20-year term aligns with the fund’s role as “patient capital,” its ultimate success hinges on risk tolerance.

He stressed that the development of hard-tech enterprises inherently involves continuous trial and error, and only through market-driven selection can breakthroughs in core technologies be achieved. If the fund invests only in guaranteed-success projects and avoids failures or losses, “it will have little meaningful impact on overcoming the fundamental bottlenecks facing China’s tech industry.”

After nine months of preparation, Chinese authorities officially announced on Friday, December 27, the launch of the National Venture Capital Guidance Fund, establishing a 20-year operational term. The first batch of three regional funds has already been set up in the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the Guangdong-Hong Kong-Macao Greater Bay Area, each expected to exceed RMB 50 billion (approximately SGD 9.1 billion) in total scale.

During the National People's Congress and Chinese People's Political Consultative Conference ("Two Sessions") in March this year, Zheng Shanjie, head of the National Development and Reform Commission (NDRC), announced that China would continue to significantly increase investment in scientific and technological innovation by establishing the National Venture Capital Guidance Fund (hereinafter referred to as the "Guidance Fund"). The fund aims to mobilize nearly RMB 1 trillion from local governments and social capital, channeling investments into technology-driven enterprises through market-oriented mechanisms.

According to the NDRC’s official website, the Guidance Fund’s launch ceremony was held in Beijing on Friday. The first three regional funds have already signed a series of letters of intent for sub-funds and direct investment projects in fields including integrated circuits, quantum technology, biopharmaceuticals, brain-computer interfaces, and aerospace.

At the press conference held the same day, Bai Jingyu, Director-General of the NDRC’s Department of Innovation and High-Tech Development, described the Guidance Fund as an “early-stage fund, patient capital, market-oriented fund, and benchmark fund.” He explained that the fund has a 20-year lifespan—comprising a 10-year investment period followed by a 10-year exit period—“to provide long-term capital support for enterprises through extended investment horizons and offer greater development space through more flexible exit timelines.”

Bai added that the Guidance Fund adheres to the principle of “investing early, investing small, investing long-term, and investing in hard tech,” primarily targeting seed-stage and start-up companies. For small enterprises, the fund requires a pre-investment valuation below RMB 5 billion, with individual investments capped at RMB 500 million.

He noted that the 20-year term breaks the traditional venture capital and private equity fund lifecycle limit of seven to ten years. For sectors with long return cycles—such as innovative pharmaceuticals—the Guidance Fund further relaxes investment time constraints. Additionally, it focuses on strategic emerging industries and future-oriented sectors outlined in the draft recommendations for China’s 15th Five-Year Plan (2026–2030), supporting key generic technology commercialization projects and investing in enterprises undertaking national missions and achieving major breakthroughs.

Huo Fupeng, Director of the NDRC’s Center for Innovation-Driven Development and concurrently Chairman of the National Venture Capital Guidance Fund Co., Ltd., explained at the same press event that the Guidance Fund adopts a three-tier structure: “Fund Company – Regional Funds – Sub-Funds.” At the top level, it operates under a corporate structure as the National Venture Capital Guidance Fund Co., Ltd. At the regional level, the fund company participates as a limited partner to establish limited partnerships in the Beijing-Tianjin-Hebei region, Yangtze River Delta, and Guangdong-Hong Kong-Macao Greater Bay Area—areas characterized by dense concentrations of scientific, educational, and talent resources, vibrant innovation ecosystems, and strong leadership roles.

Huo revealed that the three regional venture capital guidance funds for Beijing-Tianjin-Hebei, Yangtze River Delta, and Guangdong-Hong Kong-Macao Greater Bay Area completed their business registrations on Monday, December 22, and each is projected to surpass RMB 50 billion in scale.

Regarding funding sources, Guo Fangming, Director-General of the Ministry of Finance’s Department of Economic Construction, stated that the Guidance Fund is capitalized using ultra-long-term special treasury bonds. The central government will contribute RMB 100 billion at the national level, while actively encouraging social capital participation at the regional and sub-fund levels.

The WeChat public account “LP Insight” commented that the 20-year term represents a key institutional innovation of the Guidance Fund, completely breaking free from the conventional 10-year horizon typical of venture capital (VC) and private equity (PE) funds.

However, Shen Meng, Executive Director of Chanson Capital, emphasized in an interview with Lianhe Zaobao that while the 20-year term aligns with the fund’s role as “patient capital,” its ultimate success hinges on risk tolerance.

He stressed that the development of hard-tech enterprises inherently involves continuous trial and error, and only through market-driven selection can breakthroughs in core technologies be achieved. If the fund invests only in guaranteed-success projects and avoids failures or losses, “it will have little meaningful impact on overcoming the fundamental bottlenecks facing China’s tech industry.”