China Seeks to Boost Venture Capital via Insurance Funds

Aug. 21 2024 (InvestinChina.asia) – China’s financial regulator said on Aug. 21 2024 it is considering increasing the proportion of insurance funds invested in venture capital funds as part of efforts to boost long-term and patient capital in technology firms.

Wang Shengbang, director of the Legislation Department at the National Financial Supervision and Regulation Administration (NFSRA), told a press conference on August 21 that the NFSRA aims to strengthen regulatory guidance and encourage banks and insurers to increase their support for tech enterprises. This includes nurturing patient and long-term capital.

Going forward, the NFSRA will implement the spirit of the Third Plenary Session of the 20th Central Committee of the Communist Party of China, further advancing policies to support technological finance. Plans include setting up intellectual property financial ecosystem comprehensive pilot zones in regions with vibrant innovation activities, providing diversified financial support to businesses, and expanding the scope of equity investment trials through financial asset investment companies.

The NFSRA is also exploring ways to raise the ratio of insurance funds allocated to venture capital funds. The goal is to encourage insurers to invest more in the tech sector as long-term and patient capital, and to support financial institutions like wealth management companies to participate legally and in accordance with regulations in tech financial services.