Research On Management Of Government Industry Guidance Fund

As a positive response to the policy of government industry guidance fund reform,the Chinese provincial and municipal governments have drawn up a series of plans according to the local conditions to set up the government industry guidance fund.The local governments play a leading role,with the investment management institutions in charge of the management.This cooperation in the reform of government industry guidance fund leads to the realization of the effective use of financial funds,the attraction of social idle funds,which further contributes to the optimization of the local industrial structure,the promotion of the development of local firms and projects and local economic progress.With the continuous expansion of the scale of the government industry guidance fund,it not only puts forward clear standards for the professional ability,professional level and experience of the investment management agencies,but also requires high effectiveness of the investment management of the industry guidance funds.Therefore,it is necessary to further explore the possible problems and plans of the investment management of the government industry guidance fund.This study mainly uses the literature research method,the case analysis method and the investigation analysis method.It combines the theories of investment management,the industry guidance fund,and the investment management of government industry guidance fund,collects the basic situation of government industry guidance fund and investment management over the country,and employs case studies from the perspectives of government,investment management organization,and market operation.In Chongqing,the investment of industry guidance fund led by its municipal government gained initial success,which leads it to a representative city in terms of the development of industry guidance fund.In this study,the government-led environmental protection fund company(i.e.,Chongqing environmental protection industry equity investment fund management co.,Ltd.)is chosen as the case of interest.Analyses are focused on this investment management agency’s establishment and investment,management and operation,and exit,with specific suggestions proposed in the end of the study.Three conclusions are drawn from this study.First,at the current stage,the government industry guidance fund,particularly in Chongqing,have some scale and relevant experience in investment management.Therefore,it is possible to choose some Chongqing investment management institutions to further analyse the potential problems behind the investment management of government industry guidance funds.Second,in the case of Chongqing Environmental Protection Industry Equity Investment Fund Management Co.,Ltd.,this study discusses the following problems: 1)unclear positions for guidance fund in the process of establishment and investment of the fund investment management;2)imperfect use plan and unconstructed information sharing mechanism among government departments;3)lacking of the supervision system and performance evaluation mechanism during the stage of management and operation;4)lacking of the risk control mechanism and the scientific employment mechanism;5)in the exit stage,incomplete exit system and overall plan,unreasonable capital structure,and weak exit market foundation.Last,this study also proposes corresponding solutions to the above problems.For example,at the establishment and investment stage,attention should be paid to strengthen the role and function of guidance fund,improve the guidance fund use plan,and construct information sharing mechanism between government departments.For management and operation,we should focus on the establishment of supervision system and performance evaluation mechanism,optimization of the risk control mechanism and the scientific personnel management strategy.In the process of exit,we should improve the exit system and the overall planning of the fund and construct a reasonable capital structure and a solid basis for withdrawing from the market.Overall,these suggestions for the development of the government industry guidance fund can provide useful guidance for Chongqing and other provinces and cities in solving the problem of fund investment management.