Empirical Analysis On The Investment Performance Of China’s State-owned Venture Capital Company And The Improved Methods

Venture capital can provide capital for the enterprise,especiallyfor the high-tech enterprise. It will help the enterprise and promotethe growth of the enterprise. When the enterprise becomes a matureone,the venture capital will quit with the increased value of capital.Venture capital have an important role in the promoting technologicalinnovation and the development of the economy. As the interest body ofthe regulation,the government plays the most important role in thedevelopment of the venture capital. It also leads to the different modeof the choice of the venture capital in different country.In our country,the state-owned venture capital companies have beenthe mainstream model since the first establishment of the venturecapital company. There are several reasons accounting for this phenomenon.First and foremost, the state-owned company is the best development modelbecause of the constraint of the policy and legal. What’s more, therewere no experiences which we can learn from when the venture capital firstestablished in our country and the government believes that thestate-owned venture capital companies can enhance the control andinfluence of the venture capital.Besides, the reform of the marketeconomy have not finished in our country and the mechanism of the capitalmarket is not very perfect. And those elements worsen the shortage of thecapital in the early stage of the company and the failure of the market.But in some sense,the establishment of the state-owned venture capitalcompany can resolve those problems. Last but not least,the government has found that the development of venture capital will prompt the hatch anddevelopment of the high-tech companies,as a result,the government prefersto accelerate the venture capital by the administrative power. But thefeature of profit-pursuing always makes the venture capital to deviatefrom the way that government designed,so the government has to establisha great number of state-owned company to rectify it.However,the experience of the reform of the state-owned companyshowed that the state-owned policy will lead to the poor performance. Thestate-owned venture capital company is an impelled choice for our countrywhen we take a general consideration. With the development of the economyand the perfect of the financial system,the state-owned venture capitalcompany will quit from the venture capital market. But it is impracticalto perish the state-owned venture capital company completely at present.What is worse,it will hinder the development of the venture capital inour country.The emphasis of this article is as follows: On the one hand,we canappraise the economic significance of the state-owned venture capitalcompany through discovering the performance of the state-owned venturecapital company. On the other hand,we can find out the defect of thestate-owned venture capital company when we discover the performance ofthose companies,and at the same time,we can come up with some suggestionswhich are benefit for the development of the venture capital in ourcountry.