The People's Government of Shandong Province has recently rolled out the "Action Plan for Attracting and Nurturing Long-term Capital to Fuel High-Quality Development of Venture Capital Investment in Shandong." This plan sets an ambitious target: achieving an average annual growth rate exceeding 10% in venture capital investment across Shandong by the close of 2027. The goal is to have a management scale surpassing 400 billion yuan and maintain the number of active funds at approximately 3,800.

The plan places a strong emphasis on steering venture capital funds to channel over 80% of their investments into "early-stage, small-scale, and cutting-edge technology" ventures. It aims for an equity investment penetration rate exceeding 90% in assisting companies with their initial public offerings (IPOs), thereby accelerating the formation of a virtuous cycle encompassing "industry, technology, and finance." Additionally, it seeks to fully establish Shandong as a national pilot zone for technology finance reform and a central hub for venture capital investment.

To achieve these objectives, the plan outlines several specific measures:

• Streamlining Domestic and International Listing Pathways: Facilitating smoother routes for enterprises to list both domestically and internationally.
• Implementing the 'Ten-Hundred-Thousand' IPO Cultivation Plan: This involves nurturing a pipeline of potential IPO candidates, with a focus on incorporating high-quality enterprises backed by venture capital into a dedicated listing reserve pool for concentrated development.
• Guiding Venture Capital Focus: Encouraging venture capital institutions to concentrate on original and pioneering technology sectors, while establishing a risk compensation mechanism tailored for seed-stage and start-up enterprises.
• Supporting Cutting-Edge Technology Firms: Leveraging "early-stage incubation" and "in-depth incubation" models to provide robust support to hard-tech companies.
• Broadening Exit Avenues for Venture Capital Funds: Facilitating non-trading share transfers for distribution purposes and enhancing the overall efficiency of exit strategies.