The Political Bureau of the CPC Central Committee Emphasizes the Importance of “Patient Capital” in Economic Development
On April 30, the Political Bureau of the CPC Central Committee held a meeting presided over by General Secretary Xi Jinping to analyze and study the current economic situation and economic work. The meeting emphasized the need to actively develop venture capital and strengthen patient capital.
The term “patient capital” was mentioned for the first time at this meeting, sparking widespread attention in the financial field. “Patient capital” refers to long-term investment capital with a high tolerance for risk and a longer-term outlook for capital returns.
The relationship between “patient capital” and the development of new productive forces was also discussed. General Secretary Xi Jinping has emphasized the importance of developing new quality productivity through scientific and technological innovation. However, achieving technological breakthroughs requires long-term and stable financial support, making “patient capital” crucial in this process.
To grow “patient capital,” experts suggest setting performance evaluation standards for long-term investments, creating benchmarks for investing in start-ups and small businesses, and encouraging investment institutions to focus on long-term value. The goal is to attract more capital to become long-term and patient capital, ultimately fueling the development of new productive forces.
This meeting aligns with the 2023 Central Financial Work Conference’s goal of optimizing the capital supply structure and allocating financial resources to promote technological innovation and advanced manufacturing. As China aims to cultivate new-quality productive forces, the development of venture capital and strengthening of patient capital are seen as key measures to support economic growth.
In conclusion, the integration of technology and finance is essential for the development of new productive forces. By actively promoting venture capital and strengthening patient capital, the financial industry is moving towards innovation and better serving the needs of the evolving economy.