Shanghai Overhauls State Capital to Power Technology Venture Capital Surge

The Shanghai State-owned Assets Supervision and Administration Commission (SASAC) has released “16 Measures” to overhaul how state capital interacts with the technology venture capital ecosystem. The policy aims to convert rigid state-owned assets into “patient capital,” specifically targeting “hard tech” and early-stage startups that require long-term conviction rather than immediate returns. By introducing market-standard practices like differentiated management fees and market-responsive pricing, Shanghai is breaking the traditional constraints that have historically hindered state-backed VCs. The directive encourages large state-owned enterprises to launch Corporate Venture Capital (CVC) arms, effectively turning industrial giants into tech incubators for the city’s “2+3+6+6” modern industrial…