Tian Xuan: The domestic venture capital market needs further deepening reforms.

Tian Xuan, a distinguished professor at Peking University, said at the sub-forum "Creating a Good Market Environment and Advocating Long-term Value Investment" at the Boao Forum for Asia 2026 Annual Conference on March 27 that the current domestic venture capital market needs further deepening reforms, especially in cultivating patient capital, optimizing the assessment mechanism for state-owned venture capital, and improving legal safeguards. He suggested making systematic adjustments in these aspects to better support the development of hard technology and early-stage innovation. Tian Xuan proposed developing enterprise venture capital as an important path to support early-stage innovation. He gave the example of large companies such as Alibaba, Tencent, and Google having specialized departments for early-stage investments. Their investment logic is different from traditional venture capital focused on financial returns, instead emphasizing strategic coordination to help the parent company expand the industrial chain and build an industry ecosystem. These investments have lower short-term profit requirements and focus more on bringing long-term strategic value. From domestic practices, the proportion of enterprise venture capital in early-stage projects is increasing. Tian Xuan suggested further optimizing the entrepreneurial investment market environment at the institutional level to encourage more companies to participate in early-stage investments.