Fang Xinghai believes that the core element of new productive forces is technological innovation. Private equity funds and venture capital funds are important forces in promoting technological innovation. Regarding private equity funds and venture capital funds, the attitude of the China Securities Regulatory Commission is to vigorously develop while regulating development. The bottleneck reflected universally in the PE and VC fields is the difficulty in fund-raising, management, and withdrawal, among which withdrawal is the main reason.

Fang Xinghai said that according to statistics from the China Fund Industry Association, in the first quarter of this year, PE and VC funds invested in a total of 4,438 projects, and the total amount of funds invested reached 191.5 billion yuan. If considering the entire year, the total investment amount will approach 800-1,000 billion yuan. "With such an investment scale, it is difficult to say that there is no primary market. This view may reflect difficulties encountered by certain regulatory agencies in business operations."

Regarding withdrawal, Fang Xinghai stated that he is in charge of overseas listing filing work at the China Securities Regulatory Commission. Since the publication of the regulatory filing method on March 31st last year, Chinese companies have been very active in listing overseas. As of June 18th, a total of 158 companies have filed for overseas listings, of which 85 are going to Hong Kong and 73 are going to the United States. "Currently, there are many companies in the queue, which is a good thing. Many Chinese companies are very active and definitely not 'lying flat', they all want to become bigger and stronger, and we need to vigorously support these companies." Fang Xinghai further stated that overseas listing filing is a new thing, and the filing speed is not fast enough at present. In the future, the filing speed will continue to be accelerated. During the filing process, it is also necessary to emphasize the promotion of enterprises with relatively large financing amounts and strong technological innovation to list overseas, and to file for these companies as soon as possible. The China Securities Regulatory Commission supports mainland Chinese enterprises to list overseas, especially in Hong Kong.

"Combining these three advantages in independent innovation, the responsibility of the capital market is very significant," Fang Xinghai believes that China has three major advantages, namely talents, capital, and market. The first is the advantage of talents. China has a large number of talents with extensive coverage in multiple fields, including IT, biomedicine, new energy, etc. Second is the capital advantage. Over forty years of reform and opening up have accumulated a large amount of funds, which can be transformed into capital and play an important role in innovation. The third is the market advantage. China provides a huge domestic application market for innovative companies.

"In terms of technological innovation and the capital market, Fang Xinghai believes that China has three major advantages, namely talents, capital, and market. The first is the advantage of talents. China has a large number of talents with extensive coverage in multiple fields, including IT, biomedicine, new energy, etc. Second is the capital advantage. Over forty years of reform and opening up have accumulated a large amount of funds, which can be transformed into capital and play an important role in innovation. The third is the market advantage. China provides a huge domestic application market for innovative companies."

Editor/Somer