**Investment** concept
*Investment** refers to the funds established by all levels through budget arrangements, with sole capital contribution or joint investment with social capital, and the use of market-oriented methods such as equity investment to guide all kinds of social capital to invest in key areas and weak links of economic and social development, and to support the development of related industries and fields. Capital contributions can be arranged from the general public budget, the national budget, the state-owned capital operating budget, etc. The main purpose is to give full play to the efficiency and leverage of financial funds, and guide funds, resources and factors to gather in areas and projects that meet the needs of economic development through financial funds.
The main policy rationale for investment
The downward pressure on the economy has increased, the fiscal revenue has grown at a low and medium speed, and the moderately advanced infrastructure investment needs to innovate the investment and financing mechanism, and the investment will change the way the previous financial funds subsidize and support enterprises, leverage and guide social capital to invest in key areas and weak links, and support the development of related industries and fields.
At the national level, the Ministry of Finance has set up a number of national integrated circuit industry investment, China's agricultural industry development, national scientific and technological achievements transformation guidance, national emerging industry venture capital guidance, small and medium-sized enterprise development, and China's cultural industry investment. At the local level, the local government will take the leading industry as an important starting point to support industrial development and fiscal and taxation reform, and actively explore the market-oriented operation of the industry. Covering all stages of angel investment, venture capital, and industrial investment, the investment direction should realize the organic unity of the attributes of public functions and the profit-seeking attributes of market capital, and the supported industries are limited to key areas and weak links with certain competitiveness, market failure, and obvious spillover.
The main policies of *investment** are summarized as follows:
*Investment** belongs to the category of private placement**, and it is necessary to comply with the relevant self-discipline management regulations of the **investment** industry agreement, and the main provisions of private placement**, please refer to the article "Research on Private Equity Business in the Field of Infrastructure Investment and Financing" for details.
The main focus of the investment
1.*Investment** main supported areas(1) Support innovation and entrepreneurship. Venture capital enterprises are encouraged to invest in early-stage enterprises such as seed stage and start-up stage. That is**investment and entrepreneurship guidance**. Efforts should be made to solve the problems of the market environment for entrepreneurship and innovation in economic and social development, the insufficient supply of funds in the venture capital market, and the weak innovation momentum of enterprises, so as to effectively promote mass entrepreneurship and innovation. (2) Support the development of small and medium-sized enterprises. In order to reflect the national macro policy, industrial policy and regional development planning intentions, support the development of medium-sized, small and micro enterprises. (3) Support industrial transformation, upgrading and development. In order to implement the national industrial policy, support the industrialization of major key technologies, guide social capital to increase investment, effectively solve the problem of large investment and high risk in industrial development, and effectively realize industrial transformation and upgrading and major development. Especially in the field of strategic emerging industries and advanced manufacturing. (4) Supporting infrastructure and public services. Innovate the investment and financing model of public facilities, encourage and guide social capital to enter the field of infrastructure and public services, accelerate the construction of major infrastructure, and improve the quality and level of public services. It mainly includes the fields of non-basic public services, lagging infrastructure construction, housing security, ecological environment, and regional coordinated development. 2.*Investment** formThe establishment of **investment** can adopt different organizational forms such as company system, limited partnership system and contract system. **Investment** should be invested in:(1) Equity of unlisted enterprises, including equity of unlisted enterprises such as infrastructure projects and major engineering projects established in the form of legal persons; (2) Shares formed by participating in equity transactions such as private placements, mergers and acquisitions, and privatization of listed companies; (3) Other forms of investment that are in line with the national industrial policy as specified or agreed in the articles of association, partnership agreement or agreement. **Investment**Negative List of Investments:
1) Engaging in business such as guarantees, mortgages, and entrusted loans other than financing guarantees;
2) Investing in secondary market**, real estate, investment**, corporate bonds rated below AAA, trust products, non-principal-guaranteed wealth management products, insurance plans and other financial derivatives;
3) Sponsorship or donations to any third party (except for approved public welfare donations);
4) Absorbing or covertly absorbing deposits, or providing loans and loans to third parties;
5) Carrying out foreign investment with unlimited joint and several liability;
6) Raising funds through the issuance of trusts or collective wealth management products;
Basically, the investment direction and negative list of ** investment ** are consistent with the relevant self-discipline requirements of private placement registration and filing, that is, ** investment ** needs to comply with the management requirements of private placement in addition to improving the efficiency of its own financial funds and leveraging.
3.*Investment** funds**
At all levels, the amount of capital contribution should be included in the annual budget. The superior can support the subordinate ** to set up an investment ** through transfer payments, and can also jointly fund the establishment of an investment ** with the subordinate **. The establishment of ** should fully consider the financial affordability, and reasonably determine the scale and scope of investment. Encourage superiors and subordinates to participate in each other's shares in accordance with the principle of marketization, and form a joint force of financial contributions. It is not allowed to borrow in any way in disguised form. Local bond funds shall not be used for the establishment or capital injection. **Appropriate profits can be made, but no promises shall be made to other investors that the investment principal will not be lost, and no minimum return shall be promised. Investment in the capital industry can be comprehensively used in a variety of ways, such as equity participation, joint investment, financing guarantee, and appropriate profit concession of capital contribution.
How to use **investment** at this stage
Special note: The **investment** referred to below includes the private placement funded by local state-owned enterprises**) At this stage, the "Measures for the Registration and Filing of Private Investment**" (Zhongji Xiefa No. 5) and the "Interim Measures for the Management of Enterprise ** Business" have been issued and implemented, and the stricter control of private placement ** and the quantitative restrictions on the participation of **enterprises in private placement** business may have a certain impact on the efficiency of **investment**. The reason for this is that in some cases, the market entities pay more attention to the generation of physical workload, that is, the construction of construction projects, and social capital pays more attention to the payment ability of ** or local state-owned enterprises, and does not consider too much about the hematopoietic capacity and income-generating effect of the project itself. Some even agree on terms such as capital guaranteed exit and commitment to fixed income, although the first level may be led or participated by local state-owned enterprises, rather than first-class finance, but it has violated the requirements of private equity management. The author believes that at this stage, the way of efficient use of **investment** in the field of infrastructure is roughly as follows:Mode 1: Establish a parent project according to the project area to promote the implementation of similar projects as a whole. For a certain field or industry with a certain operating income, such as EOD or sewage treatment and other quasi-business fields, new energy vehicles or new energy power generation industries, etc., by the provincial or municipal ** co-ordinated, funded to set up **investment guidance**, and then to attract financial institutions and social capital funds, all local projects in the same field in line with the provincial or municipal spatial planning and industrial policy premise, can participate in the first share or under the parent ** framework to establish a sub-** and specific projects corresponding,** You can give full play to the guidance and leverage of financial funds by participating in the equity of the project company (which can be the establishment of local state-owned enterprises, introducing social capital and local state-owned enterprises jointly established by bidding and other means), bidding with social capital consortiums, and directly entering the equity of local state-owned enterprises as the main body of project implementation.
Mode 2: Overall use according to the project geographical space**. For an area with a certain operating income, such as industrial parks, economic and technological development zones, urban renewal areas, etc., the provincial or municipal level will be coordinated to fund the establishment of investment guidance, and then attract financial institutions and social capital funds. You can give full play to the guidance and leverage of financial funds by participating in the equity of the project company (which can be the establishment of local state-owned enterprises, introducing social capital and local state-owned enterprises through bidding, etc.), bidding with social capital consortiums, and directly entering the equity of local state-owned enterprises as the main body of project implementation. It is also possible to set up a number of sub-projects corresponding to the implementation cycle of specific sub-projects to start various projects in parallel and synchronously.
Mode 3: Integrate the relevant parties of the industrial chain to participate in the operation. Integrate the upstream and downstream enterprises of the industrial chain in a certain region or a certain field, and jointly participate in the initiation, for example, a high-tech industrial park, led by the first finance, initiate the establishment of industrial guidance, attract the upstream and downstream enterprises of the industrial chain related to infrastructure investment and industrial investment, and jointly contribute to the subscription of the first share. Infrastructure investment industry chain enterprises include design and construction, investment and operation, materials and equipment, etc., and industrial investment industry chain enterprises include the main producers in the park and supporting enterprises that provide supporting parts, production and processing, and trade and logistics services around the main business formats. The funds subscribed by all parties include the funds and subsidy funds for attracting investment and benefiting enterprises, the part of the special financial funds transferred to local state-owned enterprises, the company's own funds, and the funds of banks and financial institutions.