The development of investment fund industry in Chinese mainland started at about 1992. From1991-1997, 79 investment funds were established in China with total assets of about 9 billion yuan. 1997 1 1 The the State Council Securities Commission issued the Interim Measures for the Administration of Securities Investment Funds. 1In April 1998, the CSRC began to organize pilot securities investment funds according to law.1In March 1999, according to the requirements of the State Council, the old funds established before 1997 were cleaned up and standardized. The Securities Investment Fund Law was promulgated in June 2003 and came into effect in June 2004. Based on this, China Securities Regulatory Commission has formulated and promulgated a series of relevant laws, regulations and normative documents. At the beginning of 1998, the former State Planning Commission began to draft the Measures for the Administration of Industrial Investment Funds, which was submitted to the the State Council executive meeting for deliberation in July 2006. The meeting decided that "the Legislative Affairs Office of the State Council, together with relevant departments, will further demonstrate and revise according to the opinions put forward at the meeting, and then submit them to the the State Council executive meeting for discussion when conditions are ripe." The Opinions of the State Council on Further Promoting the Development of the Western Region issued this year put forward: "Revise and improve the interim measures for the management of industrial investment funds in a timely manner, give priority to organizing pilot projects in the western region, and support the western region to attract domestic and foreign investment by means of equity investment."

At the same time, in order to speed up the construction of venture capital mechanism, in March 2004, led by the National Development and Reform Commission, with the participation of ten ministries and commissions including the Ministry of Science and Technology and the Ministry of Finance, a drafting group for the Interim Measures for the Administration of Venture Capital Enterprises was set up to standardize and support the development of venture capital. At present, the measures have sought the opinions of relevant departments and strive to be introduced as soon as possible.