China seeks to boost venture capital with new rules

China’s State Council has published fresh guidelines for government agencies aimed at boosting the venture capital sector across the country, while seeking to prevent investment bubbles and illegal fundraising. Institutional investors, incubators and angel investors are all welcomed so long as investors are protected, the agency said in a statement. VC exit channels will be expanded using better regulations across jurisdictions, Bloomberg reports. The government is trying to find ways to boost the use of China’s currency in cross-border venture capital funding by domestic and foreign investors, while improving systems for Chinese enterprises seeking to invest overseas. The new measures will also help more state-owned enterprises, insurance companies and universities to launch their own VC funds with better risk controls, the agency said.