By King & Wood Mallesons’ Banking & Finance Group

At the end of 2014, Shenzhen Municipal Government issued Pilot Measures on QDIE (Qualified Domestic Investment Enterprise), which makes PE funds to have another exit channel. To take this opportunity, we herein briefly introduce and comment on four relatively new forms of loans, and their respective entry and exit channels for PE funds which could be adopted by Shenzhen market, namely the cross-border RMB loans in Qianhai, RMB overseas lending, QFLP (Qualified Foreign Limited Partner), and QDIE. It is worth noting that these channels, such as cross-border RMB loans in Qianhai and QFLP, are not only limited for Shenzhen but also exist at other localities with small variations, while RMB overseas lending can be used throughout the country. As for QDIE, it is a unique channel to Shenzhen.