An aerial view of Xiamen, a coastal city. [Photo/Xiamen Daily]

The new policies unveiled by the State Council to promote the high-quality development of venture capital are expected to help venture capital institutions in Xiamen to position themselves as patient capital and empower the development of new quality productive forces in the city, according to business  insiders.

Their comments came following the General Office of the State Council issued a set of policy measures on June 19 to promote the high-quality development of venture investment, which covers the full chain of venture capital from fundraising to investment, management and exit. This move has significantly boosted market confidence. 

In recent years, with the implementation of innovation-driven projects, Xiamen has vigorously developed venture capital and equity investment, channeling more capital to nurture scientific and technological innovation. As a result, the city has emerged as a hot investment destination in the domestic venture capital circle.

The introduction of the new policies is expected to play a positive role in promoting the healthy and sustainable development of the sector, said a manager from Xiamen Hi-tech Venture Capital Co Ltd.

The policies address key concerns related to venture capital. For example, it tackles difficulties in fundraising by encouraging long-term funds to flow into venture capital, the manager said. 

On the management side, they address tax and regulatory issues, proposing the continuous implementation and refinement of preferential tax policies for venture capital institutions. Regarding exits, the policies support eligible listed companies to raise funds through stock issuance or convertible bonds for acquiring technology-oriented enterprises, the manger added.