In the context of guarding against financial risks and deleveraging, government investment funds supplement the traditional government debt financing by market-based equity financing, which is regarded as the profound change of the government’s financial management idea and mode. In reality, the practice of China’s government investment funds is still in the stage of “learning by doing”. The diversification of the target, the lack of supervisory experience, the imperfect information disclosure and evaluation mechanism, and the shortage of professional talents pose a challenge to the government’s future risk control and the regulation of government behavior. This paper summarizes the path and trend of the development of government investment funds and the possible risks, and on the basis of international experience, puts forward the measures and suggestions for further standardizing the management of government investment funds and deepening the reform of government investment and financing system.
Keywords: government investment funds, evolution, risks, reform measures
China Finance and Economic Review
Volume 7 Number 3 Autumn 2018.P115