From Wikipedia, the free encyclopedia
Chinese state-owned investment fund
The
National Fund for Technology Transfer and Commercialisation
(
NFTTC
;
Chinese
:
?家科技成果?化引?基金
;
pinyin
:
Guoji? K?ji Chenggu? Zhu?nhua Y?nd?o J?j?n
), is a
China Government Guidance Fund
. The fund aims to support the government and public institutions in the
commercialization
process of their scientific findings and new technologies. Using a
fund of funds
approach, it invests into multiple sub-funds which in turn invests in enterprises and projects.
History
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In 2011, the
Ministry of Science and Technology
and
Ministry of Finance
established the outline and framework for the NFTTC as a way to support China's National Medium and Long-Term program for Science and Technology Development (2006?2020) plan.
[1]
[2]
[3]
In 2014, the NFTTC was launched to transform research projects into business ventures.
[4]
[5]
In 2015, it invested 1 billion yuan (US$145 million) in establishing three
venture capital
funds.
[5]
In November 2021,
Securities Times
reported that there would be major revisions to the direction and management of the NFTTC so it would become more market-orientated. For example, there would be more focus on the use of equity investments, the investment managers would have more autonomy and there was more clarification on the investment stages.
[3]
In December 2021, the NFTTC made its largest capital injection, when it set up a sub-fund with the governments in
Guangdong
,
Hubei
and
Chengdu
as well as a number of financial institutions.
[4]
By the end of 2022,
Economic Information Daily
had reported the NFTTC had set up 36
sub-funds
to invest nearly 36 billion yuan into 616 enterprises leading to the commercialization of 974 science and technology achievements.
[4]
Fund details
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The NFTTC has four key features:
[5]
- A national database that contains outcomes and findings from research projects
- A venture capital function
- Loan risk compensation for banks
- Performance incentives
The NFTTC focuses on China's hi-tech sector such as information technology, biotechnology and new materials. It has made investments alongside other
institutional investors
such as
private equity funds
and government backed funds. It is required to keep its total investments in all sub-funds between 20%-30% and shall not be a major shareholder in any sub-fund.
[2]
[4]
References
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External links
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