Notice of Taizhou Municipal Finance Bureau on Issuing the Measures for the Administration of Taizhou Municipal Government Industrial Funds

Measures of Taizhou Municipal Government for the Administration of Industrial Funds

Chapter I General Provisions

Article 1 In order to standardize and strengthen the operation and management of the industrial funds of the Taizhou Municipal Government and give full play to the guiding and amplifying role of the industrial funds of the Government, according to the "Notice of the Ministry of Finance on Printing and Distributing the Interim Measures for the Administration of Government Investment Funds" (Caiyu [2015] No. 210), "Guiding Opinions of the Ministry of Finance on Injections of Government Investment Funds to Support Industrial Development" (Caijian [2015] No. 1062), "Guiding Opinions of Zhejiang Provincial Department of Finance on Regulating the Operation and Management of Government Industrial Funds" (Zhejiang Caiqi [2015] No. 70) notice on the issuance of the Interim Measures for the Administration of the Investment Exit of Industrial Funds of the Zhejiang Provincial Government (Zhejiang Caiqi [2016] No. 93), the Measures for the Administration of Industrial Funds for Transformation and Upgrading of Zhejiang Province (Zhejiang Caiqi [2019] No. 4) and other relevant regulations, formulate these Measures.

Article 2 the industrial fund of Taizhou municipal government (hereinafter referred to as the industrial fund of the municipal government) is established by the municipal government. Its purpose is to give full play to the leverage of financial funds, realize the effective combination of government and market-oriented operation, guide financial capital and social capital to support the development of our city's real economy, and promote entrepreneurship and innovation and industrial optimization and upgrading. Promote the gathering of capital, projects, technology and talents outside the city.

Article 3 The municipal government industry fund shall operate and manage in accordance with the principles of "focusing on strategic orientation, highlighting government guidance, adhering to market operation, and reasonably preventing risks", and fully implement the development strategy of the municipal party committee and municipal government.

Chapter II Fund Establishment and Fund Raising

Article 4 The municipal government shall authorize the relevant departments to take the lead in organizing the preparation of the industrial parent fund formation or capital increase plan (see Annexes 1 and 2) and submit it to the municipal government for approval.

Article 5 The establishment of the municipal government industry fund shall meet the following basic conditions:

1. The organizational structure has been basically determined, and the sponsor agreement (except sole proprietorship), the fund charter, and the entrusted operation agreement have been initialed;

2. The funders of the fund shall specify their respective contributions according to the size of the fund and undertake to make the contributions in full and on time;

3. The fund must reach a certain scale: the municipal government shall set up an industrial fund separately, and the total scale of the first phase shall not be less than 1 billion yuan (RMB, the same below) in principle, and the total scale of the first phase shall not be less than 2 billion yuan in principle.

Article 6 Where the municipal government's industrial fund adopts a joint venture with the provincial, county (city, district) government to establish a government sub-fund, the capital contribution may be paid in one time or in installments, and shall be stated in the articles of association or partnership agreement. If the funded funds are in place in stages, the first-phase funded funds shall not be less than 40% of the total size of the fund, and the remaining funds may be put in place step by step according to the operation of the first-phase funded funds. The size of the Fund may be expanded after procedural approval.

Chapter III Organizational Structure

Article 7 in principle, the organizational structure of the industrial fund of the municipal government includes three levels: the fund management committee (hereinafter referred to as the "fund management committee"), the fund legal person institution and the fund management institution, which shall perform their respective duties and responsibilities in accordance with the fund formation plan and management measures. According to the actual operation needs of the fund, with the approval of the municipal government, the organizational structure of the municipal government's industrial fund can be determined according to its functional characteristics and operation management requirements.

Article 8 The main responsibilities of the fund management committee: to determine the development direction of the municipal government's industrial fund, to be responsible for studying and determining the investment principles and investment requirements of the municipal government's industrial fund according to the national, provincial and municipal industrial orientation and related plans, and to determine the fund's fund Raising and capital increase plans, responsible for decision-making and coordinating the formation of thematic funds, sub-fund establishment, direct investment projects, major project investment, fund withdrawal and profit transfer and other major issues, consideration of the annual report of the Fund.

The establishment of the fund management committee office is specifically responsible for the daily work of the fund management committee, implements the major decisions of the fund management committee on fund development, organizes the fund management committee to review and make decisions, is responsible for the establishment of project investment plans, and coordinates the operation and management of the fund For problems that arise, organize the assessment and evaluation of the municipal government's industrial fund.

Article 9 The main responsibilities of the financial department: perform the responsibilities of investors on behalf of the municipal government, authorize existing or newly established wholly state-owned enterprises or institutional legal persons to perform the responsibilities of investors on behalf of investors (hereinafter referred to as "acting investors"), raise and implement financial investment funds, and take the lead Formulate the municipal government's industrial fund management measures; carry out financial supervision of the municipal government's industrial funds, and be responsible for policy guidance and overall coordination.

Article 10 the main responsibilities of the competent department of the industry are: to study and put forward the establishment plan of the theme fund and the project investment (directional fund, non directional fund and direct investment project) around the economic and social development strategy and industrial policy guidance of our city; regularly promote major investment projects, implement industry supervision and project docking services; participate in fund investment decision-making, evaluate investment projects and put forward rewards and punishments.

Article 11 The main responsibilities of the agent investor: responsible for the establishment of the fund legal person institution, hiring the fund management company, responsible for the supervision and guidance of the fund management company, doing a good job in the annual financial audit of the fund and the assessment and evaluation of the fund management company, and regularly report to the fund management committee The office reports the operation of the fund.

Article 12 The main responsibilities of the fund legal entity: The fund legal entity shall establish a shareholders' meeting, a board of directors and a supervisor (committee) in accordance with the requirements of the "Company Law", and shall not establish a daily operating organization. Responsible for organizing the formulation of annual investment plans in accordance with the investment principles and investment requirements determined by the fund management committee, strengthening the supervision and management of the daily operation of the fund, and signing an entrusted management agreement with the employed fund management company.

Article 13 The main responsibilities of the fund management agency: conduct due diligence on the project and investment plan, and put forward investment suggestions; in accordance with the investment plan reviewed and determined by the fund management committee, conduct equity negotiations, sign articles of association or partnership agreements, post-investment management, and fund Withdrawal and other specific investment matters, regularly report the operation of the fund to the funder.

Article 14 The main responsibilities of the fund supervision department: the financial, state-owned assets, auditing and other supervision departments shall, in accordance with their respective responsibilities, provide business guidance and policy supervision on the establishment, operation and management of the municipal government's industrial funds.

Chapter IV Investment Principles and Requirements

Article 15 the industrial fund of the municipal government shall be invested in seven hundred billion industries, strategic emerging industries, scientific and technological innovation, rural revitalization, education and culture, and timely adjustments shall be made according to the strategic deployment of the municipal Party committee and the municipal government. Not to invest in high pollution, high energy consumption, backward production capacity and other national, provincial and municipal restricted industries.

Article 16 The industrial fund of the municipal government shall abide by the laws and regulations of the State and shall not engage in the following businesses:

1. Investing in stocks (except for private placement by listed companies), futures, corporate bonds, trust products, insurance plans and other financial derivatives;

2. Engaged in guarantees, mortgages, real estate (including the purchase of real estate for personal use), entrusted loans and other business;

3. Expenditures such as sponsorship, donations, etc. to any third party;

4. The absorption or disguised absorption of deposits, or the provision of loans and funds to any third party;

5. To make foreign investment with unlimited joint and several liability;

6. Issuing trusts or pooled wealth management products to raise funds;

The innovative business approved by the Fund Management Committee is not subject to the above-mentioned provisions, except for those expressly prohibited by laws and regulations.

Article 17 The sub-funds jointly established by the municipal government's industrial fund shall generally be operated and managed by selecting professional institutions through open methods, and the selected professional institutions shall meet the following basic conditions:

1. It is established in the People's Republic of China according to law and has been registered with relevant competent departments or industry self-regulatory organizations, with a registered capital of not less than 10 million yuan, and there are no major violations of laws and regulations in the last 3 years;

2. Having a fixed business place and software and hardware facilities suitable for its business, it shall raise funds from qualified investors who comply with the Interim Measures for the Supervision and Administration of Private Investment Funds (Order No. 105 of the China Securities Regulatory Commission);

3. Have rich investment management experience and good management performance, sound investment management and risk control processes, standardized project selection mechanism, and be able to provide value-added services such as entrepreneurial counseling and management consulting for invested enterprises;

4. At least 3 managers with more than 3 years of equity investment or equity investment fund management experience, and there are more than 3 (inclusive) successful cases of equity investment;

5. When submitting the cooperation plan, professional institutions must have obtained at least 30% of the total size of the proposed sub-fund, and provide materials such as the commitment letter of the proposed investor.

If there are special requirements for professional investment institutions under entrusted management, the department proposing the plan shall clarify the specific conditions and openly select and employ them to the public together with the legal person institution of the fund.

Chapter V Mode of Operation

Article 18 The industrial fund of the municipal government generally initiates the formation of a theme fund in the form of a fund of funds. The competent department of the industry puts forward a theme fund formation plan (see Annex 3) around the areas of government concern, combined with the policy guidance objectives and the characteristics of the industry in charge, and is implemented after approval by the fund management committee.

Article 19 The theme fund operates through the establishment of a "sub-fund" model. For a small number of major projects, it can also adopt the "direct investment" model for operation. At the same time, it is encouraged to actively explore a market-oriented operation model suitable for the actual industrial development in the region.

Article 20 The "sub-fund" model refers to the joint venture between the municipal government's industrial fund and the provincial, county (city, district) government, and social capital to establish or participate in existing funds in the form of capital increase, etc., to establish "targeted funds" and "non-targeted funds" "And other" sub-fund "model investment projects. For sub-funds established by the municipal government industrial fund in cooperation with the county (city, district) government, the proportion of the municipal government industrial fund contribution shall not exceed 40% of the total contribution of the city and county governments; for sub-funds established in cooperation with social capital, the total contribution of the city and county government industrial funds The proportion shall not exceed 30% of the fund scale, and the total amount of funds invested in projects in the city by the sub-fund and other funds entrusted by its management agencies shall not be less than the government.

1. "Targeted fund" refers to a sub-fund entrusted to a professional investment institution for operation and management, with specific major industrial projects in the city as the investment target. In the capital contribution structure of the directional fund, the proportion of independent third-party social capital contribution that is not related to the industrial project party shall not be less than 20% of the scale of the directional fund in principle, and particularly major projects shall not be subject to the restrictions on the scale and proportion of capital contribution set out in this article after being approved by the Fund Management Committee.

2. "Non-directional fund" refers to a sub-fund entrusted to a professional investment institution for operation and management and invested in a non-specific target. In principle, the proportion of social capital contributions from independent third parties not associated with the executive partner and the fund manager shall not be less than 20% of the size of the fund. The competent department of the industry shall specify the amount (multiple) of the non-directional fund to invest in the project in Taizhou City in the thematic fund plan.

Article 21 The "direct investment" model may take different forms of equity investment management such as capital injection, direct equity participation, follow-up investment, and participation in private placement according to different types of industrial funds and investment objects. The proportion of shares held by municipal industrial funds in direct investment projects generally does not exceed 20%. If there are non-cash assets in the project capital contribution of direct investment, it shall be evaluated by a qualified asset appraisal institution to reasonably determine the proportion of industrial fund capital contribution.

Article 22 The investment period of the municipal government's industrial fund shall generally not exceed 5 years, and the length of the "sub-fund" model shall not exceed 10 years. If it is really necessary to extend the investment period, it shall be determined after approval according to the original review and decision-making procedures of the project investment according to the nature of the project.

Chapter VI Investment Management Procedures

Article 23 The general procedures of the municipal government's industrial fund investment decision-making are: project proposal (solicitation), project preliminary review, project establishment, due diligence, fund management committee review, publicity, organization and implementation, etc.

Article 24 the competent department of the industry shall, in combination with the policy objectives and the characteristics of the industry in charge, solicit investment intentions from the county (city, district) government and the society, and put forward specific project investment plans to the office of the fund management committee.

Article 25 The Office of the Fund Management Committee shall conduct a preliminary review of the project investment plan proposed by the competent department of the industry, and establish a project if it meets the requirements, and submit it to the fund management agency to carry out due diligence, form an investment proposal, and provide investment models, investment periods, and investment Specific suggestions are put forward for amount, income distribution, profit concession measures, and exit methods.

Article 26 the office of the fund management committee shall, in accordance with the project investment plan put forward by the competent department of the industry, and in combination with the due diligence report and investment proposal put forward by the fund management institution, submit it to the fund management committee for deliberation and decision-making. The meeting of the fund management committee shall be presided over by the director of the fund management committee or his authorized relevant personnel, and the competent departments of the industry and external experts shall be invited to attend and provide professional opinions when necessary.

Article 27 The project investment plan that has been reviewed or approved shall be publicized on the office of the fund management committee and the relevant industry competent portal for 7 working days, except for those involving state secrets or trade secrets. If there is no objection after publicity, the fund management institution and the relevant partners shall draw up a charter or partnership agreement, which shall be implemented after formal signing.

Article 28 If the project investment plan has not been signed for 6 months after approval, and the relevant investment articles of association or agreement have not been signed, resulting in the investment plan being unable to be implemented, the fund management agency shall promptly report to the office of the fund management committee within 1 month. Report the termination of investment, and the office of the fund management committee shall report to the fund management committee for approval.

Chapter VII Withdrawal of the Fund

Article 29 The investment project of the municipal government's industrial fund shall specify in the articles of association or partnership agreement the specific exit period, exit conditions and exit mode, and shall be withdrawn in due course in accordance with the agreed manner when the investment period or agreed exit conditions are reached. If it is necessary to withdraw in an unagreed manner, the competent department of the industry shall propose an exit plan based on the policy objectives and the actual situation of the project. After approval by the fund management committee, the fund management agency shall specifically handle the exit matters in accordance with the exit plan approved by the fund management committee.

Article 30 The industrial fund of the municipal government shall mainly withdraw by means of equity transfer, stock reduction, shareholder repurchase and dissolution and liquidation. Where an asset assessment is required, a qualified asset assessment institution shall be employed for the assessment, and the assessment results shall be reported to the Office of the Fund Management Committee for the record. If the transferee is a wholly-owned state-owned company or a wholly state-owned enterprise, it may transfer the corresponding equity (share) by agreement after reporting to the fund management committee for approval; if the transferee is a non-state-owned wholly-owned company or a wholly state-owned enterprise, it shall report to the fund management After the approval of the committee, the withdrawal shall be handled by public listing in the legally established property rights trading institutions in accordance with the relevant provisions of state-owned property rights management.

Article 31 if the operation mode of "sub-fund" is adopted, the fund management institution may, except for the withdrawal method agreed with other investors in the fund articles of association or partnership agreement, under any of the following circumstances, the industrial fund of the municipal government may choose to withdraw without the consent of other investors in accordance with the examination and decision-making procedures of investment projects:

1. Failing to complete the formalities of establishment or capital contribution in accordance with the prescribed procedures and time requirements for more than 6 months after the signing of the articles of association or agreement;

2. The municipal government's industrial fund has allocated the sub-fund account for more than 1 year, and the sub-fund has not actually contributed to the project;

3. The investment field and stage of the sub-fund do not meet the original policy objectives;

4. Other pre-agreed withdrawal situations such as endangering the safety of the fund or violating the policy objectives of the fund are found.

Chapter VIII Expenses and Income

Article 32 According to the entrusted management agreement, the fund legal person institution shall, in principle, pay the entrusted management fee of the fund management company on an annual basis in accordance with the proportion of 0.6 of the investment amount.

Article 33 The contributors of the municipal government industrial fund shall, in accordance with the principle of "benefit sharing and risk sharing", clearly agree on the way of income treatment and loss burden. The principal and investment income attributable to the government generated at the time of withdrawal shall be turned over to the financial department in a timely manner in accordance with relevant regulations, except for the clear agreement to continue to be used for the rolling use of investment funds. The losses of the Fund shall be borne jointly by the contributors, and the Government shall bear limited liability to the extent of the amount of capital contribution.

Article 34 In order to better play the guiding role of government investment, the government may make appropriate concessions, but shall not promise to other investors that the investment principal will not be lost, and shall not promise low returns, unless otherwise stipulated by the state. If the capital contribution of the municipal government industrial fund realizes the income, it may make concessions to the partners, including lower-level governments, sub-fund management institutions and other social investors, but it shall not transfer the income to the partners beyond the total after-tax income. If the capital contribution of the municipal government industrial fund has no income or loss, the income shall not be paid to the partners in the form of government subsidies.

Article 35 The sub-fund and direct investment projects established by the municipal government's industrial fund in cooperation with social capital may agree in advance on the profit-making standard, and specify the profit-making conditions in the articles of association or agreement by setting the amount and multiple of investment in the specified area, the amount and multiple of social investment, and the realization of economic and social benefits. When the municipal government's industrial fund withdraws, if the conditions for the concession agreed upon in the articles of association or agreement are met after assessment, the concession shall be made in accordance with the articles of association or agreement.

Chapter IX Risk Prevention and Control and Performance Appraisal

Article 36 The financial department shall, in conjunction with the competent department of the industry, establish a supervision and assessment mechanism for the municipal government's industrial funds, make decisions in accordance with the principles of "openness, transparency, and selection of the best", accept the supervision of all aspects of society, and promptly propose problems found. Rectification opinions to ensure the standardized operation and management of the fund.

Article 37 The competent department of the industry shall conduct assessment and evaluation of investment projects, and put forward rewards and punishments based on the evaluation results, and report to the fund management committee for deliberation. For projects with better operation, incentives can be given by means of additional investment, benefit transfer, public recognition, etc.; for projects with poor operation results, investment should be reduced until early withdrawal.

Article 38 the agent investors shall earnestly perform the relevant rights and obligations, strengthen the guidance and supervision of the operation and management of the industrial fund of the municipal government, regularly supervise and inspect the investment operation of the fund, the use of funds, and the financial income and expenditure, and entrust professional institutions to carry out special audits according to the needs of the work, so as to effectively prevent operational risks and ensure the safety and efficiency of the fund.

Article 39 The legal person institution of the fund shall improve the working system of the board of directors and the board of supervisors, review and make decisions on the annual investment plan, and report to the office of the fund management committee and the agent for the record.

Article 40 The fund management institution shall, in accordance with the requirements of the state on the construction of the internal control standard system of enterprises, establish and improve the risk control compliance system and internal control system, including the risk management system and risk control process. Fund management institutions and their staff shall consciously abide by the industry self-discipline requirements and professional ethics, and be diligent and responsible.

Article 41 The sub-fund jointly established by the municipal government's industrial fund shall be entrusted to a commercial bank in China for custody. The custodian bank shall carry out daily work such as asset custody, fund allocation and settlement in accordance with relevant regulations and custody agreements, and conduct dynamic supervision of investment activities, Regularly issue bank custody reports to the sub-fund management agency.

Article 42 A blacklist mechanism and a credit management mechanism shall be established, and if there are violations of regulations and breaches of contract against the management institutions and managers of investment projects, they shall have the right to exercise the following rights individually or simultaneously:

1. Rectification within a time limit;

2. Announce its violations and defaults on the websites of financial departments, industry authorities, fund management agencies, etc., and record the relevant information in the management files; if the circumstances are serious, the fund will stop cooperating with it;

3. The Office of the Fund Management Committee and the Municipal Development and Reform Commission will incorporate it into the social credit information sharing and exchange platform in accordance with the Interim Measures for the Management of Government-funded Industrial Investment Funds, and make announcements or carry out joint punishments;

4. If the loss of the fund is caused, the relevant party shall be required to compensate for the loss in accordance with the agreement.

Article 43: Improve the due diligence and exemption mechanism. For violations of laws and regulations during the operation of the municipal government's industrial fund, the corresponding responsibilities shall be investigated in accordance with laws and regulations; for investment projects that have performed their duties and responsibilities, if risks cause investment losses, the fund management committee The committee and its offices, competent departments, agency agencies responsible for funders, fund legal entities, fund management agencies and individuals shall not bear relevant responsibilities.

Chapter X Periodic Reporting System

Article 44 Within 10 days after the end of each quarter, the fund management agency shall report to the agent investor the investment operation, project progress, changes in equity and use of funds of the municipal government's industrial fund, which shall be reviewed and approved by the agent investor and reported to the fund management committee Office for the record.

Article 45 Within 4 months after the end of the fiscal year, the fund management agency shall submit the annual work report of the municipal government industrial fund and the annual accounting report audited by the certified public accounting firm to the agent investor, and timely report the investment operation process Major matters (including but not limited to the revision of the company's articles of association, capital increase or decrease, management personnel change, merger, liquidation, etc.) shall be submitted to the Fund Management Committee Office for the record after being approved by the agent investor.

Article 46 After the municipal government industrial fund signs the articles of association or agreement with the relevant partners, changes in the core elements such as the increase in the amount of capital subscribed by the fund to the sub-fund, the substantial change of the project management party, the extension of the duration of the fund, etc., shall be reported by the fund management institution to the office of the fund management committee and dealt with after approval. Substantive changes to the Project Management include but are not limited:

1. Substantial changes in the principal shareholder (corporate) or general partner (partnership) of the sub-fund management institution;

2. Changes in more than half (inclusive) of the key persons of the sub-fund management institution or the chairman or general manager;

3. Substantial changes in the major shareholders and business scope of the direct investment project, which affect the realization of the policy objectives of the initiating department of the direct investment project.

Article 47 The sub-fund management institution and direct investment project of the municipal government industrial fund shall establish a major matter disclosure system, regularly submit the sub-fund or enterprise operation report, audited financial report, etc. to the fund management institution, and the fund management institution may entrust a professional institution to audit the sub-fund or enterprise according to the needs of the work.

Article 48 If major problems occur in the operation and management of the municipal government's industrial funds, the fund management agency shall report to the fund management committee within 7 working days.

Chapter XI Supplementary Provisions

Article 49 These Measures shall come into force as of the date of promulgation, and the Measures for the Administration of Industrial Funds of Taizhou Municipal Government (for Trial Implementation) (No. 48 [2018] of Taizhou Finance and Enterprise) shall be repealed at the same time. In order to maintain business continuity, the original organizational structure shall be implemented before the new organizational structure is established.

Article 50 The sub-funds established in cooperation with the relevant national and provincial industrial funds shall be implemented in accordance with the relevant national and provincial management measures.

Annex: 1. Program Framework for Initiating the Establishment of an Industrial Fund of Funds

2. Programme framework for the replenishment of existing industrial parent funds

3. Framework for thematic fund formation programmes

4. Programmatic framework for the establishment of targeted or non-targeted funds

5. Programme framework for direct investment projects

Annex 1:

Programme framework for initiating the establishment of an industrial parent fund

1. parent fund formation plan

Background and objectives of establishment, fund size, organizational form, investment field, promoter and fund management organization, management structure, project selection process, investment decision-making mechanism, investment custody, risk prevention, investment exit, management fee and income distribution, operating period, etc.

2. Fund Principal Sponsor Agreement

3. fund charter or partnership agreement (draft)

Agreement on Entrusted Management of 4. Funds (Draft) and Articles of Association of Fund Management Institutions (Partnership Agreement)

5. Industry Fund Fund Custody Agreement (Draft)

6. Project Reserves and Phase I Investment Plan

7. the commitment letter of local government and social funds, and specify the time limit for the funds to be available.

The recent audit report of the main sponsor issued by the 8. accounting firm.

9. other information

Annex 2:

Programme framework for the replenishment of existing industrial parent funds

1. Industry Fund Capital Increase Plan

Background and objectives of establishment, fund size, organizational form, investment field, promoter and fund management institution, management structure, project screening procedure, investment decision-making mechanism, investment custody, risk prevention, investment exit, management fee and income distribution, operating period, etc., and the increase in the number of industrial funds.

Resolution of the General Meeting of Shareholders (Shareholders' Meeting, Partners' Meeting) of the 2. Industry Fund

Articles of Association of 3. Industry Fund (Partnership Agreement) and Unified Social Credit Code Certificate

Agreement on Entrusted Management of 4. Industry Funds and Articles of Association of Fund Management Institutions (Partnership Agreement)

5. Industry Fund Investment Management Process and Due Diligence Guidelines

6. Industry Fund Fund Custody Agreement

7. fund investment projects and investment plans for the coming year

8. a letter of commitment from the local government and specify the time limit for the funds to be available.

The recent audit report of the industrial fund issued by the 9. accounting firm.

Annex 3:

Framework for thematic fund formation programmes

1. fund size

2. policy objectives (quantifiable assessment)

Fiscal and tax contributions, employment promotion, investment progress of major projects, formation of upstream and downstream industrial chains, investment in the proportion of start-up enterprises, driving the development of the massive economy, etc.

3. operation mode

Take one or more models of targeted funds, non-targeted funds, and direct investment projects.

4. operational requirements

Basic requirements for (I) funds

Industry areas, geographical restrictions, investment scale, investment progress, annualized income, capital structure, investment projects, fund manager qualifications and other requirements.

(II) Targeted Fund Requirements

Specific requirements and regulations for directional funds.

(III) non-directed fund requirements

Return ratio (amount and multiple of investment in Taizhou project) and other specific requirements and regulations for non-targeted funds.

(IV) Direct Investment Project Requirements

Specific requirements and regulations for direct investment projects.

5. Investment Management

Competent department, contact unit (office), application process, approval time limit, communication and feedback mechanism, etc.

6. investment exit

7. reward and punishment mechanism

(I) profit scheme

For the different models of directional funds, non-directional funds and direct investment projects, to achieve the policy objectives, clear the object of concession (fund management institutions, city and county government industrial funds or project enterprises, etc.), set the corresponding concession standards and conditions, in principle, the concession standards of similar models should be consistent.

(II) performance appraisal and profit-sharing implementation

(III) liability for breach of contract

8. risk prevention and control

Periodic reporting system, information disclosure, etc.

9. Other

Annex 4:

Programmatic framework for the establishment of targeted or non-targeted funds

Background and objectives of 1. establishment

2. Fund Key Elements

(I) fund size

(II) organization form and funding scheme (structure)

(III) fund registration place

(IV) investment areas or specific projects to be invested

Duration of (V) Fund

(VI) management expenses and distribution of proceeds

Special Agreement of 3. Fund

City and county linkage, investment progress, return investment ratio (non-directional funds need to be agreed), etc.

4. professional management team

Basic information about the (I) management team

(II) past investment experience

5. reserve projects (non-targeted funds to be stated)

6. project selection and investment decision-making mechanism (non-targeted funds need to be explained)

7. Related Transaction Disclosure Mechanism

8. Withdrawal Arrangements

9. reward and punishment mechanism

Specific profit criteria and measures, performance appraisal and liability for breach of contract.

Annex 5:

Programme framework for direct investment projects

1. investment background and significance

Social benefits, driving effects, etc.

2. key elements

(I) project investment scale

(II) funding scheme

(III) project investment period

(IV) income distribution

3. enterprise situation

4. Project Planning and Feasibility Study

5. Withdrawal Arrangements

6. reward and punishment mechanism

Specific profit criteria and measures, performance appraisal and liability for breach of contract.