Abstract
To facilitate China’s economic reform, the rapid growth of the industrial fund has become a vital support force. This study aims to evaluate the Local Government’s Industrial Investment Fund Sustainability in Henan, China. Two-factor theories, quasi-public theory, market failure theory and sustainable development theory, along with a study of domestic studies on the development of local government industrial investment funds, were addressed to investigate the research phenomenon empirically and theoretically. For this analysis, quantitative methods are considered to be more fitting. The primary goal is to provide an overview of the apparent facts of interest to researchers. The quantitative findings include primarily statistical analysis of the data obtained. In this study, the description of statistical analysis data is used to explain the studies predicted final results. The empirical findings of this study that the structure of the supervisory system, the process of market exit and technical talents are essential factors that stimulate the industrial investment fund of the people for the local government in Henan, China, are similar and confirm with the results of previous scholars. Thus, the primary catalyst for China’s financial growth is accountability. There would be no China today without a transition and an opening. Nevertheless, in comparison to the real needs of monetary gain, China’s receptiveness to the outside world is still insufficient.
 
 JEL: L10; L16; L78
 
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Highlights
The industrial investment fund is a specific phenomenon in China and is generally referred to abroad as a venture capital fund and private equity fund
In 2017, with 45 new investment guidance funds, with an additional target of 221.5 billion yuan, the most important number of new government industrial investment guidance funds are in East China; the largest target size of the new investment guidance fund is North China, with 14 new investment guidance funds, with an additional target size of 345.2 billion yuan; the number of new investment guidance funds (The National Bureau of Statistics of China, 2019)
This study examines a set of research hypotheses based on quantitative data collected from questionnaires to establish a theory to verify the hypothesis, rather than trying to establish a theory
Summary
The industrial investment fund is a specific phenomenon in China and is generally referred to abroad as a venture capital fund and private equity fund. An industrial investment fund has become the nucleus of the financial system. Local government industrial investments funds in China are currently facing sufficient room for growth but will play an increasingly important role in the development of the national economy (Zhang et al, 2008; Yu, 2016). Henan faces both great opportunities and challenges, according to Yinxing (2016), and the growth of different cities in Henan Province is significant. In 2017, with 45 new investment guidance funds, with an additional target of 221.5 billion yuan, the most important number of new government industrial investment guidance funds are in East China; the largest target size of the new investment guidance fund is North China, with 14 new investment guidance funds, with an additional target size of 345.2 billion yuan; the number of new investment guidance funds (The National Bureau of Statistics of China, 2019). Huang (2018) reported that 546 government industrial investment guidance funds were set up in East China by the end of June 2018, with a total target size of 2,174.7 billion yuan, ranking first in the country in terms of quantity and target size; the overall target size of the North China government-industry investment guidance fund is 1,554.1 billion yuan, which is the second largest in China (The National Bureau of Statistics of China, 2019)
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