Direct equity funds are a type of fund that is determined relative to industrial funds. Industrial funds are tools of the market rather than policy.

Industrial funds cannot be set up like investment companies at all levels of government in the past. With the gradual marketization, the government should gradually fade out of the control process.

However, during the period of promoting the pilot industry fund, necessary management and supervision must be implemented, and on the basis of summarizing experience and improving the system, we must gradually move towards marketization.

For most small direct equity investment funds, the National Development and Reform Commission currently treats them as venture capital funds, and there is no need to implement an approval system for them.

For government-supported venture capital enterprises, the National Development and Reform Commission implements a filing management system.

However, he said that for large-scale industrial investment funds subscribed by state-owned enterprises and financial institutions, the state should conduct necessary reviews to avoid short-term behaviors that turn into disadvantages.

At present, financial institutions investing in industrial funds still need to report to the State Council for case-by-case approval.

Because professional portfolio management institutions and high-quality fund management talents still need to establish market credibility; the investor rights protection system is not perfect enough, and a multi-level capital market has not yet been formed, especially the system construction of industrial direct equity funds.

It is still being explored and researched, and there is still a process for its introduction and improvement.