Good Morning, everyone! I am very happy to participate in this forum. Just now, on behalf of international organizations, Mr. Feidahan was full of confidence in China's economic trend, and revealed that PE and VC will have the potential for rapid development in the China market. Just now, the government of China talked about China's partnership law and put forward his personal suggestions. I'm here to tell you about our actual work as a development bank and a political bank in PE and VC market funds. On 1998, the Development Bank initiated the establishment of the first PE fund in China, which was then called the Sino-Swiss SME Venture Capital Fund and cooperated with the Swiss government. From 1998 to now, we have probably gone through seven or eight years. At present, the amount of funds we have invested is about 10 funds at home and abroad, and the investment is about1300 million yuan. The scale of participating funds has reached 300 million RMB, which is of course very small compared with foreign investment. However, we have started in this respect, and we are also paying attention to and investing in this market. In particular, the president is very concerned about the investment fund field, so he has been pushing us to develop in this field. As we all know, Development Bank, as a political bank, is restricted by some national laws and policies, so we have communicated and coordinated with some national regulatory authorities for many times, including CSRC, Finance Committee, China Banking Regulatory Commission and Development and Reform Commission. Therefore, we also made some breakthroughs in fund investment in the early stage, and tried our best to pilot financial innovation, including asset securitization, including the restructuring of financial institutions, including some restructuring of trust and investment companies and securities companies. At that time, some cases were not approved by the State Council. At present, there are probably two ways for development banks to participate in equity investment funds. The first way is direct investment, including establishing china-africa development fund with Swiss government, Belgian government, Italy-Italy Manda Fund, including Africa specially approved by the State Council recently. We participate as a direct shareholder, including the former industrial fund, and the development bank also holds a certain stake in the management company. The other is indirect investment, indirect investment, initiating the establishment of funds. Now, including the Wuhan Guidance Fund, we have invested 500 million RMB. Including Wuhan (Optics Valley) Fund, we also invested 500 million yuan, and the scale of the two funds is 65,438+00 yuan. I have also participated in fund-raising work in these areas before and after. What we are doing now is to cooperate with Shanxi government, Shanxi science and technology guidance fund, and Jilin science and technology guidance fund with Jilin provincial government. At the same time, we made the foundfound model and entrusted professional fund managers to invest our money in these venture capital funds. As a part of the fund, the fund manager raises funds from other aspects. As an LP, the fund contribution share will not exceed 40% of the fund share. This year is also a year of CDB reform and adjustment. Maybe next year we will have some direct investment or some investment from the fund. The State Council may let us go, but this plan has been submitted now, and opinions are being sought at the national level. We are discussing and waiting for the State Council to finalize many aspects. We are very optimistic that the State Council may open up this market, so we are also involved in this field. As an LP and a fund manager, we are also cultivating some talents ourselves. I may manage my own funds in the future, and I will do both. I don't rule out this possibility. At present, all the funds we make are legal persons, and we are international cooperation. We are both limited partnerships of Sino-Italian Fund and (Dongben) Fund. We participate in the investor advisory committee, and we are totally investors. Both aspects work well. Other funds are enterprise funds, and the development bank will entrust the funds to a professional fund management company for management. In the domestic trend, LP has a say in investment decisions. Most of our venture capital funds have investment decision-making power, and the proportion of members exceeds 1/3. Another issue is the integrity of the China market and the mentality of investors. In fact, there is also a lack of effective constraints on fund managers. Fund managers use personal money to manage assets, even if the fund management is not good, the risk is very small, and individuals do not bear unlimited responsibility. Therefore, I think how to find a balance point in the future development of China Fund, so that institutional investors can determine your integrity. I believe that fund managers will achieve good returns in future performance. At the beginning, foreign countries were also individuals with unlimited responsibilities. After five or ten years, China's fund culture can develop to a certain extent, so we can rest assured that we will be institutional investors in the future. Our development bank is in the fund field, because the fund is now divided into several departments in Wuhan, and I am responsible for venture capital business. Now our main idea is that it is difficult for development banks to lend to small and medium-sized enterprises when they implement national policies and VC loans in the early stage, which can not meet our conditions and the conditions of many domestic commercial banks. One reason is their own reasons, but also the reasons of financial institutions. Banks are just icing on the cake. Of course, our development bank advocates timely assistance. In this process, we find that direct equity financing can finance small and medium-sized enterprises well. If equity financiers enter potential small and medium-sized enterprises, reduce their asset burden rate and improve their capital level, so as to gain our trust and improve their credit standing, we want to support the development of small and medium-sized enterprises in China. At present, I mainly want to cooperate with local governments all over the country, including local, city and county governments. We hope local municipal governments can give some money, because every local municipal government gives some money to subsidize small and medium-sized enterprises free of charge, which may be loan interest and technology business expenses. This part of the money was originally free, and the effect was not particularly obvious. During the investigation, we found that many places were very willing to pay this money and proposed to cooperate with us to set up this venture capital fund, and then it became paid and unpaid. After this fund has been cultivated for a certain period of time, we can take the lead in introducing loans from such credit institutions to help small and medium-sized enterprises develop. In addition, we can transfer our equity to later commercially mature funds, because their risks are controllable. After they came in, we basically quit after they went public, because we still represent some policies of this country. In this way, when we set up venture capital funds in cooperation with local governments, we are faced with no talent management and no local government management. We are faced with a very important task to find a fund manager. China's fund manager market is very immature, and some foreign countries have entered China, but they represent foreign culture, so there is room for local venture capital opportunities in fund management.