Six departments, including the Beijing Local Financial Supervision and Administration Bureau, jointly issued the "Guiding Opinions on Promoting the Pilot Work of Equity Investment and Venture Capital Share Transfer" recently.

The guiding opinions aim to improve mechanisms and services through policy innovation and promote pilot share transfers, broaden the exit channels for equity investment and venture capital and form a virtuous circle of "funding, investment, management and retreat" in the industry. The aim is to promote the smooth circulation of financial and industrial capital.

Clarify the transfer and exit path of State-owned fund shares

The "Guiding Opinions" propose that it is necessary to fully expand the exit channels for equity investment and venture capital shares, promote the expansion of share transfer pilots and attract patient capital to support technological innovation.

Explore the establishment of a fund share registration and filing and quality service system

The "Guiding Opinions" support the Beijing Equity Exchange Center's share transfer pilot to establish and improve the registration and filing and transfer service systems of various partnership fund shares.

Support the establishment of private equity secondary market funds

The "Guiding Opinions" also propose supporting the establishment of specialized private equity secondary market funds (S funds) in Beijing. Qualified foreign institutions will be supported to set up S funds in Beijing and enter the pilot share transfer to participate in related businesses.

S funds that meet the current support policies and relevant conditions of Beijing's financial industry will be provided with policy incentives to fund managers based on their actual investment scale in Beijing. 

If the actual cumulative investment scale is above 3 billion yuan ($46.68 million) and less than 5 billion yuan, a one-time financial support of 10 million yuan will be given; for those above 5 billion yuan, a one-time financial support of 15 million yuan will be offered. 

Improve the pilot service support system for share transfer

The "Guiding Opinions" support intermediary service agencies to participate in the pilot share transfer. The opinions encourage various districts to provide high-quality services for fund managers and intermediary service agencies participating in the pilot share transfer.

Establish a mechanism connecting fund share change information with industry-management departments

The "Guiding Opinions" propose exploring the establishment of a pilot share transfer of the Beijing Equity Exchange Center to regularly report relevant fund share transfer data and information to the China Securities Investment Fund Industry Association, the Municipal Financial Supervision Bureau and other departments.