Chapter I  General Provisions

Article 1 These measures are formulated, in accordance with the experiment of relevant incentive rules, with a view to guiding and promoting business-starting investment in Zhongguancun Science Park (hereinafter referred to as the Park),and further promoting innovation and business-starting in the Park.

Article 2 Business-starting investment enterprises shall refer to foreign institutional investors that invest in Business-starting enterprises which are authenticated as high-tech enterprises in the Park, in order to obtain capital gain from transfer of shares at the time the enterprise is mature or relatively mature, and domestic institutional investors set up in accordance with Temporary Measures Concerning Business-starting Enterprises, Provisions Concerning The Administration of Foreign-funded Business-starting Investment Enterprises and other relevant laws and regulations.

Article 3 Risk subsidy for business-starting investment enterprises (hereinafter referred to as risk subsidy) shall refer to special subsidy (ies) given, in proportion with the actual amount of capital invested in new enterprises in the Park, to authenticated business-starting enterprises. New enterprises shall refer to high-tech enterprises that have been in existence for not more than 3 years in the Park.

Chapter II  Quality required and standard for risk subsidy

Article 4 Any business-starting investment enterprise that has actually invested in enterprises in the Park and is authenticated as a partner by Zhongguancun Administrative Committee can apply for risk subsidy.

Article 5 A business-starting enterprise to be authenticated as a partner in the Park shall fulfill the following conditions:

(1)registered capital not less than RMB 30 million  or business-starting investment capital under its fiduciary management not less than RMB 100 million.

(2)operation regulations. There should be scientific and rational project evaluation standards, investment decision-making procedures as well as incentive and restraint regimes.

(3)successful investment experiences, or good condition of enterprises invested in by it.

(4)at least three of the senior managers in charge of investment management with not less than two years¡¯ business-starting investment experience or relevant experience.

Article 6 A business-starting investment enterprise shall fulfill the following conditions to obtain risk subsidy:

(1) authenticated by Zhongguancun Administrative Committee as a partner.

(2) the enterprise(s) it has invested in is(are) high-tech enterprise(s)registered in the Park, and has(have) been in existence for not more than 3 years.

(3) having actually invested in enterprise(s) in the Park.

Article 7 The subject for subsidy shall be the actual amount of capital invested by a business-starting investment enterprise. The subsidy rate shall be 10% of the actual amount invested in an enterprise. If the capital is the first amount of business-starting investment an enterprise received, the subsidy rate may be up to 15%. The ceiling amount of each risk subsidy shall be RMB 1 million.

Chapter III Application acceptance and verification

Article 8 A business-starting investment enterprise that is not authenticated as a partner in the Park can go through formalities at the Financing and Investment Promotion Center of Zhongguancun Science Park (hereinafter referred to as Financing and Investment Promotion Center) with the following documents:

(1) basic information of the institutional investor,(appendix I)

(2) a duplicate of business license or other business certificates,

(3) articles of association or other major documents concerning investment and management, including but not limited to: standard description of project evaluation, instruction of investment decision-making procedures and introduction of incentive and restrictive regimes,

(4) introduction materials of major investment managing persons, including but not limited to: business background and investment record of three or more managing persons(appendix II),and

(5) Standard Report issued by credit intermediary institutes authenticated by Zhongguancun Administrative Committee.

Article 9 Enterprises that are already partners of guiding capital investment shall not need to be authenticated again.

Article 10  A business-starting investment enterprises that is already authenticated as cooperation partners, and has made actual investment in enterprises in the Park, can apply to the Financing and Investment Promotion Center for risk premium with the following valid materials:

(1) Risk Subsidy Application Form for Zhongguancun Business-starting Investment (appendix IV),

(2) a duplicate of business license of the enterprises they invested in and high-tech enterprise certificate(s),

(3) the joint venture (or contractual) letter of intent signed by it and other shareholders and partners of enterprises they have invested in.

        (4) a duplicate of capital contribution certificate and a list of shareholders of the applicant enterprise(including the proportion and amount of share hold by them ) with  seal of the information center of industrial and commercial bureau.

Article 11 An applicant enterprise can apply directly at www.tzzgc.gov.cn. After verification£¬the Financing and Investment Promotion Center shall inform qualified enterprises to submit written materials.

The written materials shall be in triplicate. In addition to all the written materials required for the application of risk subsidy, an electronic version of Risk Subsidy Application Form for Zhongguancun Business-starting Investment shall be submitted. In addition to all the written materials required for authentication of business-starting enterprises, electronic version of materials mentioned in (1), (3) and (4) of article 8 shall be submitted.

Article 12 The Financing and Investment Promotion Center shall verify and confirm investment behaviors of an applicant business-starting enterprise and the materials it submitted, issue written opinions and submit projects that meet relevant requirements to Zhongguancun Administrative Committee for further verification and eventual allocation of money.

Article 13 A business-starting investment enterprise shall apply for risk subsidy one month after actual investment within a year, otherwise, it shall not receive any subsidy.

Article 14 If a business-starting investment enterprise is found to have committed false investment in order to obtain risk subsidy during the implementation of these measures, it shall be disqualified from partnership.

Chapter IV Supplementary provisions

Article 15 These measures shall take effect as of January 1, 2006.

Article 16 Business-starting investment enterprises that have invested in enterprises in the Park since July 1, 2005 can apply for risk subsidy since the implementation of these measures.