Research On Constructing Investment Project Evaluation Method For S Province Governmental Guiding Funds Based On Analytic Hierarchy Process

Improving economy and technology is among the most significant functions of the public finance of our country.In the early years,the Chinese government mainly relies on traditional means of fiscal support such as tax concessions and fiscal subsidies,which led to problems like limited access to funds for individual enterprises and low efficiency in the circulation of financial funds,etc.Since 2000,to promote the market-oriented operation of the financial funds and enlarge the leverage effect of financial funds,governmental guiding funds have emerged as one of the solutions to the market failure in financing market.In the practice in China,governmental guiding funds are private equity funds established by the government and co-financed by fiscal and other public funds.After exploration and development for more than 20 years,governmental guiding funds have now become an indispensable backbone for promoting innovation,entrepreneurship and optimization and upgrading of industrial structure in China.However,from the personal work practice in managing governmental guiding funds,the author found that many governmental guiding funds,including certain governmental guiding fund of S province,lacks guidelines for practicing guiding effect in investing activities generated to help fund managers scientifically measure investments’ performance in three aspects: guiding effect,profitability,and impact on fund portfolios.Therefore,this study attempts establish an index system for evaluating investment value of investment target,which can provide suggestions on optimizing the investment quality of the case fund.This thesis firstly,from the perspective of theoretical research,explained the expectations and influence of governmental guiding fund from on behalf of public finance,covered how private equity fund managers evaluate targets normally and how to construct an evaluating index system for equity investment.The author also composed the development of governmental guiding funds in China and predicted priorities of the future.Many studies based on the current situation of governmental guiding funds investment point out that these funds are underperforming in practicing leading effect,and many studies and practices therefore focus on optimizing the post-investment performance evaluating index system and promoting prudent pre-investment research with the evaluation results in turn,which influenced the study methods of the thesis.Next,based on the Analytic Hierarchy Process(AHP)method,this thesis built the weightless index system applicable to various type of governmental guiding funds through theoretical research and interviews with industrial experts,then determined the index weights for the case fund,followed by simulated scoring of some projects the case fund invested and some other projects the case fund decided not to invest in order to predict the possible influence if the evaluating index system could be adopted before investment decision.The prediction shows that case fund’s portfolio might be optimized by taking the scoring results from the evaluating index system into consideration.In addition,this thesis puts forward optimization advice for case fund and various governmental guiding funds.