mobileslots| Tian Xuan, Wudaokou School of Finance, Tsinghua University: Encouraging patient capital to invest in new quality productivity can lengthen the assessment period

editor|
32

Topic: 2024 Tsinghua Wudaokou Global Financial Forum

21st Century Economic report reporter Liu Ningxin reporting from Hangzhou

On the morning of May 27th, the international conference "Bretton Woods system: past 80 years and Future prospects" and the 2024 Tsinghua Wudaokou Global Financial Forum opened in Hangzhou.

At the scene of the forum, reporters from the 21st century economic report conducted interviews on topics such as enterprise innovation and system optimization.MobileslotsTian Xuan, vice dean of Wudaokou School of Finance, Tsinghua University.

For enterprises, the driving force of technological innovation comes to a large extent from the competitive pressure in the market. At present, many local governments in China have set up industrial guidance funds to invest in innovation. How to treat the role of these two forces? In terms of policy, how to better promote innovation, and what system design can there be?

In Tian Xuan's view, free competition in the market is one of the most important power sources for industrial development and scientific and technological innovation.

mobileslots| Tian Xuan, Wudaokou School of Finance, Tsinghua University: Encouraging patient capital to invest in new quality productivity can lengthen the assessment period

Take the new energy vehicle industry as an example, the current trend of new energy vehicles replacing traditional fuel vehicles has become irreversible, but at that time, the risk of the development of new energy vehicles was extremely high. finally, new energy vehicles were able to subvert traditional fuel vehicles by relying on free market competition. at the beginning, the barriers to entry were not too high, the participants included enterprises of all kinds of ownership, and the technology continued to develop and grow in the full competition. Finally, the road of new energy vehicles was cleared.

"Scientific and technological innovation is a very difficult thing. The exploration of unknown paths is full of thorns and failures, and requires free, equal and full competition." Tian Xuan said that therefore, he believes that it is very important to play the role of combining an effective market with a promising government, and it is also necessary for the government to create a business environment of full competition, equal competition and fair competition as far as possible, so that everyone can give full play to their entrepreneurial spirit and be able to take risks.

Tian Xuan believes that some people are willing to take risks to innovate. Of course, it is necessary to encourage this entrepreneurial spirit and create a good environment. This is an urgent task for the government. At present, both central and local governments are trying to create a level playing field. Support these entrepreneurs to focus on scientific and technological innovation in the fierce competition.

As for the government's industrial guidance fund, Tian Xuan told the 21st Century Economic News that he has been concerned about some changes in the composition of venture capital investors in recent years.

"our venture capital began about 1993, and foreign capital began to enter China to make corresponding attempts. By the time the gem was established in 2008, US dollar funds were basically in the dominant position for more than 10 years, characterized by 'going to both ends'. Us dollar funds set up overseas funds to invest in domestic projects, and then went overseas to withdraw." Tian Xuan said.

After the establishment of gem in 2008, it opened the exit channels, the rapid rise of RMB funds, more private capital for venture capital. In the past 3-4 years, state-owned funds such as government-guided funds and government investment platforms have increased the proportion of venture capital of large central enterprises and state-owned enterprises.

In Tian Xuan's view, state-owned funds are really likely to become the main force of patient capital.

Tian Xuan also pointed out the main problems in the current investment innovation of state-owned funds, such as the operation that is not completely market-oriented. "Local guidance funds may have more motivation to attract investment, and they may think more about bringing in capital, bringing in good industries and enterprises, raising local employment, GDP growth and tax revenue, and so on."

How to treat this problem, and how to find a solution from the institutional level?

Tian Xuan pointed out that adjusting measures to local conditions is an important direction, and it is necessary to develop new-quality productive forces in accordance with local conditions, and it is also necessary to guide local fund investment in accordance with local conditions. "sometimes, the local area may not be suitable for the development of certain industries and the introduction of certain enterprises, so there will be some distortions and mismatches."

Tian Xuan believes that top-level design needs to be strengthened, and in the process of promoting a unified market, if all localities want to figure out what to do and mechanism design, they need to invest government funds in the most basic research to enhance scientific and technological innovation.

Tian Xuan, for example, in terms of evaluation mechanism, when assessing investment, because the innovation cycle of new quality productivity is very long, is it possible to lengthen this cycle of assessment instead of assessing it on an annual basis, so as to truly reflect patient capital and give the corresponding investors enough time?

"is it possible to package and evaluate the projects he invests in during the assessment? As far as market-oriented funds are concerned, nine out of 10 projects are at a loss, or 99 out of 100 projects are at a loss. as long as one can earn tens of times or hundreds of times the return and completely cover the original losses, this is a good investment. " Tian Xuan said.

As the funds with the background of state-owned assets involve the preservation and appreciation of state-owned assets, as well as the corresponding audit risks, the assessment of individual projects will naturally affect the guidance of innovation-oriented. "people are more willing to invest in projects that are stable in the later stage." they do not dare to invest in small-scale science and technology early and invest in innovative projects with new productivity, which have become "clear stocks and real debts". We can learn from market-oriented funds to make corresponding improvements. Make some adjustments in the design of the mechanism. " Tian Xuan said.