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The Development of Government Investment Fund in China: Current Performance and Practical Effects(No. 7, 2018)


By Sun Fei, Research Institute of Finance, DRC

Research Report No. 7, 2018 (Total. 5282) 2018-1-11

Abstract: In recent years, China's government investment fund has witnessed a rapid development. Not only the government-guide fund has been put into effect, but the local government investment fund has also experienced a swift advance. By the end of 2016, 1013 projects of government-guide investment fund had been set up, with a total of more than 5 trillion yuan. The Ministry of Finance, the National Development and Reform Commission, and China Securities Regulatory Commission have issued respective management regulations and rules to enforce supervision and promote the normal development of government investment fund. But because of the overlapping supervision and some non-uniformed provisions, it is necessary to strengthen coordinated supervision. Viewing from the operation effect, the government-guide investment fund could make use of the professional advantages of excellent fund management companies and groups, greatly improve the using efficiency of fiscal fund through leveraging social capital, overcome market failure to some extent and realize multiple targets such as enhancing industrial upgrading and enterprise development, promoting social capital revaluation and accelerating the optimization of local financial ecological environment.

Key words: the government investment fund, current performance, effects