Huang Liping, Deputy Secretary General Of CFA: The Fund Is The Driving Force For Innovation And Development

On November 28, Huang Liping, member of the Party committee and Deputy Secretary General of China Securities Investment Fund Association, delivered a speech entitled "adhering to long-term value and promoting innovation and development" at the annual meeting 2020 of Southern finance and Economics International Forum.

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Huang Liping pointed out that enterprises are the foundation of innovation and development and the source of high-quality growth. The fund is the power of innovation and development, and the supplier of innovative capital, which occupies an important position in the modern financial system.

Since 2014, China's private equity funds, especially equity venture capital funds, have been developing unprecedentedly. The effect of early investment and small investment is remarkable, which provides a strong driving force for innovation and development.

By the end of the third quarter of this year, the registered management scale of equity venture capital funds has increased 11 times, reaching 10.96 trillion yuan, of which the management scale of venture capital funds has increased 13 times to 1.54 trillion yuan. Equity venture capital funds are investing 41900 unlisted and unlisted enterprises, with a capital of 5.53 trillion yuan; among them, the venture capital funds are investing in 20800 enterprises with a capital of 709.3 billion yuan. Among the unlisted and unlisted enterprises, small and medium-sized enterprises accounted for 78.8%, and high-tech enterprises accounted for 30.9%. In the first three quarters of 2020, the new investment of equity venture capital fund is 905.4 billion yuan, including 160.1 billion yuan of venture capital fund. Among the enterprises listed on the science and technology innovation board, nearly 90% of the enterprises obtained private equity venture capital investment fund investment before listing, and the equity investment principal reached 70.4 billion yuan, equivalent to 40% of the total amount of initial raised funds of the invested enterprises.

"For the fund industry, the most important challenge is to maintain professionalism, develop professional ability, and promote social wealth growth and civilization progress." Huang Liping pointed out.

Huang Liping stressed that the fund, as a social subject specialized in investment activities, should conform to the direction of economic development and social progress. First, the direction of technological progress and industrial transformation; second, the direction of urbanization and social civilization development; third, the direction of corporate governance with both economic and social responsibilities.

Huang Liping pointed out that at present, there are many difficulties and challenges in the high-quality development of the fund industry.

One is the lack of long-term funds. In China's public private funds, the main investors are still natural persons and general industrial and commercial enterprises. Restricted by the term structure and risk preference of investors, it is difficult for funds to realize long-term and strategic allocation.

Second, the governance system is not perfect. There are still many behaviors that violate fiduciary obligations and fund laws in the industry. It is a long way to go to cultivate trust culture and optimize industry governance.

Third, responsibility investment is underdeveloped. In the practice of fund investment, there is a lack of indicators and methods reflecting the direction of civilization and progress of environment and society, and the efforts to promote corporate governance are not effective enough.

Huang Liping said that the fund industry association will actively promote long-term investment, responsible investment practice and institutional culture construction. First, we should start from the "best interests of investors", cultivate a culture of faith and improve industry governance. Second, the long-term promotion of cultural construction is conducive to the formation of long-term funds. The third is to promote the culture of responsible investment and contribute to the harmonious development of man and nature, man and society.