On March 17, Ministry of Commerce of the People's Republic of China (MoC) promulgated guides on attracting foreign capitals in 2008. According to the guides, new forms will be developed and more channels will be expanded to capture foreign capitals within this year.

MoC said Chinese government will encourage foreign investors to establish VC firms/funds, and improve VC investment exit mechanism, with a goal to help domestic SMEs develop. Besides, Chinese government will channel off qualified foreign invested enterprises to debut on domestic capital market, and encourage foreign investors to participate in the state-owned enterprise restructuring via M&A or other forms.

Last year saw foreign capitals enter China in a sound structure. Foreign-invested enterprises paid much attention to R&D, energy-saving and environmental protection.

Chinese government will research out news form to use foreign capitals and optimize foreign capital utility structure, drawing foreign capitals to exert positive effects in terms of self-creativeness, industrial upgrading and regional corresponding development. Moreover, foreign capital utility should be in line with Chinese macro control.