Rmb fund is also a kind of money fund, that is, the fund with RMB as the dominant currency, which is relative to the previous dollar fund. The following small series gives you a detailed introduction to what a RMB fund is.
Development history of RMB funds
In the past few years, the domestic venture capital industry was dominated by US dollars, and the withdrawal of venture capital was also based on the overseas listing of enterprises. Recently, the wind seems to be quietly changing. With the realization of full circulation of small and medium-sized enterprises, RMB investment projects including Tongzhou Electronics and Yuanguang Technology have achieved high returns, and the investment of RMB funds has also begun to surge.
Investing in RMB funds has actually started long ago. In 2000, Jiangsu province made a major adjustment to its venture capital fund management, and Jiangsu comprehensive high-tech venture capital companies only played the role of investors. After the introduction of this policy, Jiangsu Gaoxin cooperated with foreign professional venture capital management institutions such as CDH Venture Capital Center, IDGVC and Longke Venture Capital. However, due to the limited policy environment at that time, RMB funds failed to achieve the expected results.
At that time, there were three main obstacles to the development of RMB funds: first, China lacked a perfect legal framework for venture capital and could not establish a limited partnership system according to foreign systems; Second, foreign exchange under capital cannot be freely exchanged, which makes it impossible for overseas funds to fully participate in RMB investment; Third, due to the restrictions of domestic capital market policies, venture capital cannot achieve a smooth exit and high return here. In addition, there were only a few venture capital management companies established by local teams at that time.
Growth period of RMB funds
With the passage of time, these problems that hinder the development of RMB funds are gradually being solved. In March 2003, the Regulations on the Administration of Venture Capital Enterprises with Foreign Investment came into effect, which began to provide a legal framework for foreign venture capital to invest in RMB. 5438+065438+In June 2005, ten ministries and commissions jointly issued the Interim Measures for the Administration of Venture Capital Enterprises, which provided special legal protection for venture capital enterprises and legal space for the establishment of venture capital funds in the form of limited partnership without violating the existing laws. Then, the new version of Company Law and Securities Law, which came into effect in 2006, provided more space for the development of venture capital enterprises. Especially in August 2006, the National People's Congress passed the new version of the Partnership Enterprise Law, which stipulated that the partners in a partnership enterprise can be divided into general partners and limited partners. At the same time, the law stipulates that the income from production and operation and other income of a partnership enterprise shall be paid separately by the partners in accordance with the relevant tax regulations of the state. The new law not only clarifies the form of limited partnership, but also solves the problem of double taxation, which means that there are basically no legal obstacles for private equity investment in China.
In terms of exit, on June 5438+065438+1October 2 1 day, the last small and medium-sized board company, Ganyuan Electric Power Shareholders' Meeting, passed its share reform plan with a high vote. At this point, the small and medium-sized board has achieved full circulation, opening a new channel for venture capital withdrawal. In this new channel, four venture capital institutions, Shenzhen Chen Da Venture Capital, Shenzhen Innovation Investment, Shenzhen Hi-tech Investment and Shenzhen-Hong Kong Industry-University-Research Venture Capital, have achieved a return of 30 times in five years by investing in Coship Electronics. The high beam software invested by IDGVC rose by 1.27% on the first day of listing and trading on the small and medium-sized board, which is a perfect stroke for IDGVC to test the withdrawal of the domestic capital market.
In contrast, the overseas exit channels of foreign venture capital are restricted by policies. Beginning with the Notice of the State Administration of Foreign Exchange on Improving the Foreign Exchange Management of Foreign Capital Mergers and Acquisitions issued on June 5438+ 10, 2005, the state has begun to supervise the listing mode of "red chips". The Interim Provisions on Merger and Acquisition of Domestic Enterprises by Foreign Investors, which came into effect on September 8, 2006, declared that the "red chip" model would be restricted by all-round examination and approval, and the difficulty of listing overseas red chips would be greatly increased. For the familiar "two-headed" mode of foreign venture capital institutions, the exit from overseas is greatly restricted, and the domestic capital market has become an optional exit mode from the perspective of interests and policies. Accordingly, "fund-raising" showed signs of turning around. Although it is not a natural choice to raise RMB funds in China, it has become a natural choice for many funds.
Perfection period of RMB fund
At present, in addition to the issued Safran Growth Fund (Tianjin), many foreign-funded management institutions in the market are already raising or planning RMB funds. Even so, in the short term, RMB funds are still groping, and it is difficult to determine when RMB investment can exceed US dollar investment. But in the long run, the venture capital market in China, which is dominated by overseas investment and overseas withdrawal, is only a transitional period, and will eventually be replaced by the mode of "local financing-local investment-local management-local withdrawal".
Financial information comes from cooperative media and institutions, and is the author's personal opinion, which is for investors' reference only and does not constitute investment advice. Investors operate accordingly, at their own risk!