Shen Tao, Deputy Director of the Finance Department at Tsinghua School of Economics and Management: Leveraging Patient Capital Through Risk Sharing to Inject Momentum into Cultivating New Quality Productive Forces

This year’s government work report, when outlining the task of “cultivating and expanding emerging industries and future industries,” proposed establishing a mechanism for growth in future industry investment and risk sharing. Shen Tao, Associate Professor and Deputy Director of the Finance Department at Tsinghua University School of Economics and Management, told Securities Times reporters that establishing a growth and risk-sharing mechanism for future industry investment is of great institutional innovation significance. Its brilliance lies in solving a core long-term problem in the development of future industries through institutional arrangements—that is, the mismatch between highly uncertain innovative activities and the capacity of capital to bear risks—thereby better unleashing entrepreneurial spirit and social capital vitality.

On one hand, policies like the National Venture Capital Guidance Fund leverage social capital into the future industry sector, easing financing constraints for tech companies in their early stages; on the other hand, through reasonable risk-sharing arrangements, entrepreneurs can focus more on technological breakthroughs and industrial exploration, thus releasing innovation vitality.

Shen Tao said that the reason patient capital can form fundamentally depends on a long-term favorable investment return environment in the capital market, which is built on policy stability and market predictability. From this perspective, the growth mechanism for future industry investment and risk sharing supports the cultivation of patient capital. Together, they gradually form a long-term capital ecosystem that supports the development of future industries, providing sustained momentum for cultivating new productive forces and building a modern industrial system in China.

(Securities Times Two Sessions Reporting Team)