TREE NEWS update: Sichuan and Shandong provinces have unveiled new policies to loosen restrictions on government investment funds. Sichuan’s 20 measures remove return-to-local investment ratios and registration requirements for venture capital funds, allow up to 100% losses on single projects, and extend fund durations to 20 years. Shandong’s 16 measures grant exemptions for managers who act diligently but miss expected returns, avoiding single-project or single-year performance assessments.
Sichuan, Shandong ease rules for government investment funds
This marks a notable shift in provincial government fund governance, signaling a tolerance for higher-risk, longer-horizon venture investing. By removing return-to-local mandates and extending fund lives, Sichuan and Shandong are effectively prioritizing innovation and patient capital over short-term economic metrics. The diligence exemptions in Shandong reduce the career risk for fund managers, potentially attracting more professional talent. The key question is whether other provinces will follow suit, as this could reshape the competitive landscape for regional tech funding, though implementation and actual capital deployment will determine real impact.
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