On March 15, 2010, Shanghai Municipal Government approved a pilot program in which foreign investors may become qualified foreign limited partners ("QFLP") of private equity investment funds ("Pilot Program") on its executive meeting. The Pilot Program, which is subject to confirmation and approval of the State Administration of Foreign Exchange ("SAFE") and other relevant authorities, is expected to be officially announced soon.
The Oriental Morning Post reported that a Trial Plan for the Participation of Foreign Investment into RMB Equity Investment Funds (the “Trial Plan”) was approved by the Shanghai government on March 15, 2010. This development will be fully publicized in April and first implemented in the Pudong New Area. The Trial Plan will open a gateway for the conversion of foreign exchange into RMB, which has been a major factor hindering foreign general partners (GP) and limited partners (LP) from becoming involved in the RMB PE fund industry.Continue Reading PE Fund Trial Plan: New Gateway for Foreign Investors?