PRC government takes first measure to allow overseas PE investing

According a government statement, the pilot program, called the Qualified Foreign Limited Partner (QFLP), has been launched to boost China's role in private equity's global narrative as well as continue with its own financial development. QFLP, which will be available to select investors, is said to parallel the Qualified Foreign Institutional Investor scheme implemented in 2002 to allow overseas investors buy and sell yuan-denominated stocks and bonds.

"This is one of the widest areas that, once opened up, will lift the final obstacle to even the playing field between USD funds and RMB funds," Kevin Ban, Partner at Weil, Gotshal & Manges LLP based in Shanghai, told AVCJ in the days leading up to the government's announcement.

While local governments had long contemplated such pilot programs, this is the first. Ban had also suggested that metropolises including Tianjin and Beijing may also be considering foreign PE investment schemes.

 

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• Topics
• Greater China
• Regulation