There are many differences among urban industrial funds, PPP guiding funds and PPP industrial funds in terms of fund establishment purpose, fund nature, fund source, investment mode and exit mode.

The purpose of setting up urban development fund is mainly based on the lack of funds of local governments in urban construction and to alleviate the financial pressure of the government. The nature of the fund is a non-profit policy fund, the inferior funds are undertaken by the government, and the priority funds are mostly large institutional investors such as banks and insurance. The financing method is also debt financing, and the interest needs to be paid as agreed before the end of the fund, and the principal needs to be repaid at the end of the fund.

The purpose of setting up urban industrial funds is mainly to develop specific industries in the region, and the investment direction is generally mature industries with stable cash flow, such as tourism, large consumption, medical care, information industry and so on. Fund attributes do not belong to the policy category, and generally have a strong willingness to make profits. Priority funds are mostly social institutional investors, and inferior funds are enterprises in social capital. Investment methods are mostly a combination of equity and bonds. When financing by equity, social capital and institutional investors will invest in enterprises in the industry. When an enterprise develops to a relatively mature stage, it will withdraw its investment in the form of equity and gain capital appreciation. When financing is realized by creditor's rights, the financing subject needs to repay the principal and interest for the investors of the investment institution in the form of debt interest as agreed.

Forward-looking Industry Research Institute pointed out that the purpose of setting up PPP guiding fund is to give play to the demonstration effect of financial funds, incite financial and social capital, realize the fund amplification effect, better reduce the government's burden and relieve the government's financial pressure, which belongs to the policy category and is not for profit. As inferior funds, government funds guarantee the priority funds of large institutions such as banks and insurance, and the investment mode is equity mode or creditor's rights mode. If equity investment is implemented, it will be repurchased by the social capital of the project at maturity, and if the social capital is not repurchased, it will be repurchased by the government; Where the creditor's rights are invested, the borrower's main project company will return them on schedule.