Govt investment funds to better spur innovation

Targeted steps attracting greater influx of social capital seen as key to economy

China has taken a series of policy measures to calibrate its government investment fund system through its entire lifecycle, with a particular emphasis on enabling unimpeded exit channels and allowing for reasonable risks.

This, analysts said, is expected to foster innovation while accepting the possibility of failure.

By collaborating with the private sector, government investment funds are able to maximize the impact and efficiency of fiscal resources, ultimately attracting a greater influx of social capital into priority sectors and driving sustainable and innovation-driven growth, they added.