China Seeks Tighter Oversight of Government Investment Funds

China is moving to tighten oversight of government investment funds as it seeks to steer capital more effectively toward national priorities such as industrial upgrading, innovation and entrepreneurship.

The National Development and Reform Commission has issued a trial regulation setting stricter evaluation and management requirements for government investment fund allocations.

The NDRC said the framework is intended to align capital deployment more closely with industrial policy and the goal of building a “modern industrial system,” while strengthening coordination between national-level and local government funds in areas where markets fall short.

Evaluation criteria include support for “new quality productive forces,” technology innovation and commercialisation of research, the provision of patient capital and public well-being, alongside indicators linked to regional strategies, priority sectors, capacity utilisation and policy implementation.