Construction Of Two Types Of Government Support In The Social Construction Of The Venture Capital System

In December 2007,Wuhan urban agglomeration and Chang-Zhu-Tan city group were approved as the pilot zone for overall reform of "Two-oriented Society" (Resource-saving and environment-friendly society). According to the requirments of Two-Oriented Society, these two areas should speed up the development of Two-oriented industry, with High-tech industry as principal, and carrying out industrial restructuring becomes a top priority of these two areas. As the "engine and accelerator" of High-tech industry, venture capital plays an irreplaceable role in the rapid development of high-tech enterprises and their industrialization, and it is an absolutely necessary tool in supporting the construction of the Two-oriented Society. This paper adopts the basic principals of venture capital under the background of construncting Two-oriented Society, studies the government-supporting behavior in the development of the venture capital in China, and attempts to construct a government-supported venture capital system after that.At first, several theories are presented in order to provide a theoretical basis for the following study, including Information Asymmetry theory, Principal-Agent theory, Contract theory and Positive External-Benefits theory. Then, some systemic discussion are made on the status of venture capital and the support function of government to it on the construction of Two-oriented Society, indicating the practical basis for the play of venture capital function and government support effect. After that, researchs on detailed methods of governments'support of venture capital are exerted, drawing on the government support experiences of foreign countries and domestic regions where the venture capital industry has developed much further. Finally, a government-supported venture capital system is designed to prompt the construction of Two-oriented Society, combined with the practice of Chang-Zhu-Tan Two-oriented Society construction.In conclusion, this paper holds that we must utilize venture capital's financial support function in the construction of Two-oriented Society. At the same time, to prompt the cyclic development of venture capital and provide better service to the Two-oriented Society construction, government should adopt corresponding measures on different stages of venture capital circulation.