Recently, the General Office of the State Council issued the "Guidance on Promoting the High-Quality Development of Government Investment Funds" (hereinafter referred to as the "Guidance"). The "Guidance" puts forward 25 measures in 7 aspects, aiming to build a more scientific and efficient management system for government investment funds and promote the high-quality development of government investment funds.

The "Guidance" emphasizes that it adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implements the spirit of the 20th National Congress of the Communist Party of China and the second and third plenary sessions of the 20th Central Committee, highlights the government's guiding and policy-oriented positioning, standardizes the operation of government investment funds in accordance with the principles of marketization, legalization, and specialization, develops patient capital, and focuses on achieving practical results. Reasonably coordinate the layout of funds to prevent homogeneous competition and the crowding-out effect on social capital. Improve the responsibility mechanism with consistent rights and responsibilities and compatible incentive and restraint, and promote the formation of a high-quality development pattern of government investment funds with moderate scale, reasonable layout, standardized operation, scientific efficiency, and controllable risks.

The "Guidance" proposes that, first, it is necessary to identify the positioning and better serve the overall situation of national development. Focus on major strategies, key areas, and weak links where the market cannot fully play its role, attract and drive more social capital, support the construction of a modern industrial system, and accelerate the cultivation and development of new quality productive forces. Give play to the cross-cycle and counter-cycle adjustment roles of funds as long-term capital and patient capital. Second, improve the hierarchical and classified management mechanism. Clarify the hierarchical management requirements for fund establishment, improve the differentiated management mechanism for different types of funds, and standardize the budget management of various government contributions. Third, strengthen overall coordination and integrate and optimize the layout. National-level funds and local funds should form a joint force, and provincial governments should strengthen the overall management of funds in their respective regions. Fourth, improve the professional and market-oriented operation level. Standardize the operation and management of funds, optimize the investment methods of funds, and give full play to the role of fund managers. Improve fund performance management, establish and improve a fault-tolerant mechanism, optimize the full-chain and full-life-cycle assessment and evaluation system, and not simply use the profit and loss of a single project or a single year as the assessment basis, so as to create a good atmosphere that encourages innovation and tolerates failure. Optimize the fund development environment, highlight the orientation of positive incentive policies, and boost market investment confidence. Fifth, optimize the exit mechanism to promote a virtuous cycle of investment. Broaden the exit channels of funds, encourage the development of private equity secondary market funds, merger and acquisition funds, etc., improve the multi-level capital market system, and explore the simplification of the project exit process. Sixth, strengthen internal control construction to prevent and defuse risks. Improve the risk prevention and control system and enforce financial and economic discipline. Seventh, strengthen organizational guarantees. Adhere to and strengthen the leadership of the Party, strengthen departmental coordination, and standardize regulatory behaviors.

The "Guidance" requires that all regions and relevant departments should raise awareness, strengthen organizational leadership,  layer by layer, do a good job in overall coordination, improve management and service levels, and better play the role of government investment in supporting the high-quality development of the economy and society.（Outlook New Era）