'Patient capital' seen as key to sci-tech self-reliance

Automation equipment helps save manpower in Wuxi Diesel Engine Works. With more policy support on the horizon, State-backed funds are expected to play a leading role in China's efforts to develop "patient capital" that is needed to strengthen technological self-reliance, officials said on Wednesday. To develop patient capital, it is important to both fully respect the role of the market and leverage the government's function, Li said, adding the State Council, China's Cabinet, has called for measures to assist investment funds that are funded by the government and SOEs in acting as patient capital. Wang Hailin, an official from the State-owned Assets Supervision and Administration Commission of the State Council, said the anticipated measures will include relaxing fund size limits, raising the proportion of investments by centrally administered SOEs, focusing on the evaluation of long-term investment return and defining conditions for exemption from liability for due diligence. Li said China will also strengthen patient capital by encouraging insurance companies to invest more in VC funds and expanding the pilots where banks' financial asset investment companies can make equity investment.