Venture Capital Control Of Overseas Investment Institutions

With the rapid development of the economic globalization and China’s economy, thepublic institutions (thereafter referred to PI for short), as part of the state-owned assets, aremuch eager to participate in overseas investment. In addition, the implementation of thestrategy of "Going Out", as well as the promulgation of "the Administrative Measures forOverseas Investments, provides a powerful policy support and theoretical basis for PIoverseas investment. Thus, more and more PIs are no longer satisfied with the domesticmarket, but seek to explore overseas investment opportunities. Meanwhile, its overseasinvestment risks are also obvious. Different to the enterprises, are there any specialties for thePIs overseas investment? Does its overseas investment activity have any problems and risksneedy to be solved? And how should they learn to face the complicated overseas market andinvestment climate? All these questions pose as important and concerned topics for bothacademia and enterprises. Therefore, the study of the risk control of PIs overseas investmenthas important theoretical and practical significance.This paper uses the combination method of literature research and comparative analysis. Theauthor studied the relevant research in the field of overseas investment done by the scholarsboth home and abroad, our government’s relevant policies and regulations for PIs overseasinvestment and the special provisions for PIs overseas investment. And the author alsoanalyzed and compared the five different points between PI and enterprises in terms ofinvestment purposes, disposable assets, applicable laws, investment procedures, supervisionand evaluation. The author then reach to summarize that PI could be improved in terms oflaws and regulations, supervision and management, investment programs and internalmanagement, with its main risks including political, cultural and information asymmetry. Inthe end, this article proposed a risk control strategy for PIs overseas investment from thenational, industry and various institutions’ interior level, by which in order to guide toenhance the standardization of PIs’ overseas investment process and strengthen thesupervision and management of its state-owned assets, ensuring the value of state-ownedassets.