The State Council has approved a slew of policies and measures on promoting the high-quality development of venture capital, according to an official circular released on June 19.

Favorable policies and better management mechanisms will be put in place to actively support the development of venture capital. The role of venture capital will be fully leveraged in strengthening technological innovation.

According to market-oriented and law-based principles, guidance should be provided to keep venture capital stable and prioritize investment in key sectors, the circular said.

The circular also asked to enhance the principal role of enterprises in innovation and help technology companies to grow, in order to provide strong support for cultivating new quality productive forces, achieving high-level self-reliance and strength in science and technology, and fostering new growth drivers and new strengths.

More efforts will be made to foster diversified venture capital entities, broaden channels to attract venture capital funds, and enhance government guidance and tailored supervision.

In addition, exit mechanism and business environment for venture capital will be refined.

China will expand the opening up of venture capital investment by revising regulations and boosting accessibility for foreign investors, according to the document.

The country will revise the regulations on the administration of foreign-invested venture capital investment enterprises to facilitate foreign investors in engaging in venture investment within the territory.

Support will be provided to international professional investment institutions and teams to establish renminbi funds within the territory, and leverage their investment experience and comprehensive service advantages.