The Promise and Pitfalls of Government Guidance Funds in China
| Autor: | Yifan Wei, Yuen Yuen Ang, Nan Jia |
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| Rok vydání: | 2023 |
| Předmět: | |
| Zdroj: | The China Quarterly. :1-21 |
| ISSN: | 1468-2648 0305-7410 |
| DOI: | 10.1017/s0305741023000280 |
| Popis: | In 2005, the Chinese government deployed a new financial instrument to accelerate technological catch-up: government guidance funds (GGFs). These are funds established by central and local governments partnering with private venture capital to invest in state-selected priority sectors. GGFs promise to significantly broaden capital access for high-tech ventures that normally struggle to secure funding. The aggregate numbers are impressive: by 2021, there were more than 1,800 GGFs, with an estimated target capital size of US$1.52 trillion. In practice, however, there are notable gaps between policy ambition and outcomes. Our analysis finds that realized capital fell significantly short of targets, particularly in non-coastal regions, and only 26 per cent of GGFs had met their target capital size by 2021. Several factors account for this policy implementation gap: the lack of quality private-sector partners and ventures, leadership turnover and the inherent difficulties in evaluating the performance of GGFs. |
| Databáze: | OpenAIRE |
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