In 2020, despite the severe pandemic and a complex international political and economic landscape, China successfully completed the comprehensive building of a moderately prosperous society and brought the "13th Five-Year Plan" to a perfect close. As we entered 2021, global hot money surged, and the pandemic finally showed signs of turning a corner—creating a pivotal opportunity for the recovery of the fund industry. Against this broader backdrop, the Shanghai Yangpu District People's Government, in collaboration with Mother Fund Weekly and Jianfa Emerging Investment, proudly hosted the "Chao Qi"—2021 China Mother Fund Annual Opening Conference—in Shanghai. This year’s event brought together over a hundred leading investment institutions to jointly explore how to break new ground and foster collaboration in 2021, amid today’s intricate economic cycles and ongoing pandemic uncertainties.

At the roundtable forum titled "The Long Money Revolution: China's Mother Fund on a New Journey," Kong Xiaolong, founding partner of *Mother Fund Weekly*, served as the moderator. Joining him were Xiao Shijun, Vice Chairman of Prologis China and Chairman & CEO of Prologis Jianfa Equity Investment Fund; Qian Jin, Managing Director at Azalea Capital; Wang Jipeng, Partner at Yuanhe Chencun; and Hu Qisheng, General Manager of Ancheng Capital—collectively exploring the long-money revolution that has already arrived.

This article excerpts insightful remarks by Wang Jipeng, Senior Partner at Yuanhe Chencun, on how China's "long-money revolution" can achieve success amid the concurrent dynamics of policy and market trends.

Here’s the transcript of the roundtable discussion, carefully edited and condensed by *Mother Fund Weekly*, with some portions omitted:

What kind of incentives are most likely to boost the growth of the investment industry?

Wang Jipeng: The broader national policy framework continues to play a significant role in shaping equity investment. Particularly with today’s STAR Market, 90% or even 99% of companies have received private equity funding at some stage of their growth—clearly demonstrating the government’s strong support for innovation and technology in this space. As such, we believe the government’s commitment to fostering angel investing, guiding funds, and equity investments is both clear and well-defined. On a practical level, tax incentives are highly beneficial; after all, the growth of private equity is intrinsically linked to favorable tax policies, making taxation a crucial entry point for boosting this sector.

Where exactly lies the future of China's long-term capital?

Wang Jipeng: After 2016, the introduction of new regulations on asset management made it significantly harder for financial institutions to directly enter the equity investment market. When it comes to new sources of growth, the first is industrial capital—because it already has established strategic layouts, a broad perspective, and the ability to seamlessly integrate diverse resources. The second is private capital, which has undergone substantial transformation over the past few decades. In fact, private capital is increasingly returning to the market. For instance, the next generation of internet entrepreneurs from publicly listed companies or STAR Market firms have already demonstrated remarkable strength. Their past successes were often fueled by access to capital, and going forward, they’ll likely leverage that same capital to deepen their industry insights and foster greater collaborative synergies. These individuals are poised to become key drivers of emerging growth. Lastly, traditional enterprises have also accumulated considerable wealth, and the growing popularity of Family Offices and family trusts could inject additional fresh capital into the market.

How should we view the transformation of state-owned assets into mother funds?

Wang Jipeng: Over the past two years, the government has launched several new large-scale funds—some worth hundreds of billions, others around several tens of billions. These include industry-specific support funds as well as development funds aimed at small and medium-sized enterprises. Overall, these funds maintain a relatively market-oriented approach. As a result, one option is to leverage market-driven mechanisms to manage government capital effectively, ensuring optimal outcomes and returns. Alternatively, by partnering with other types of private-sector funding, these government-backed initiatives can further enhance their efficiency in meaningful ways.