Recently, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) and the National Development and Reform Commission (NDRC) jointly introduced policy measures to promote the high-quality development of venture capital funds by central enterprises, supporting central enterprises in initiating and establishing venture capital funds with a focus on early-stage, small-scale, long-term, and hard-tech investments. It was mentioned that in response to issues such as "hesitation to invest" and "unwillingness to invest" in state-owned venture capital, a performance evaluation and due diligence compliance exemption mechanism tailored to the characteristics of state-owned central enterprises will be improved.

A full-lifecycle evaluation mechanism for venture capital funds, focusing on functional roles, will be established. This includes "calculating the overall account"—conducting long-term evaluations of the entire investment portfolio—

as well as "calculating the big picture," where evaluations prioritize the fulfillment of functional roles while also considering factors like returns, without solely pursuing financial gains.

Galaxy Securities stated that the investment value of central and state-owned enterprises in the process of Chinese-style modernization should be emphasized.

First, the current round of state-owned enterprise reforms aims to enhance core competitiveness and strengthen core functions, potentially accelerating mergers, reorganizations, and resource integration among central and state-owned enterprises.

Second, the market-oriented operational mechanisms of central and state-owned enterprises are continuously improving. By 2025, the widespread implementation of performance-based adjustments and exit mechanisms for underperforming executives is expected to further enhance operational efficiency and profitability.

Third, against the backdrop of boosting the capital market, requirements for "market value management" among central and state-owned enterprises may be strengthened. These enterprises will pay greater attention to the market performance of their listed entities, with increased dividend payouts and timely share buybacks or repurchases becoming more common to boost confidence.

Fourth, amid overseas uncertainties and the transition between old and new economic drivers domestically, central and state-owned enterprises will play a leading role in stabilizing growth and expanding investment, serving as a certainty amid uncertainties.