It is reported that the Shanghai version of the QFLP program has recently been approved in principle by the national financial regulatory authority. This is the first plan approved in the three QFLP pilot cities in Beijing, Tianjin and Shanghai. The so-called QFLP (Qualified Foreign Limited Partners) refers to foreign institutional investors who, after passing the qualification approval and supervision procedures for their foreign exchange funds, convert foreign capital into RMB funds and invest in domestic PE and VC markets. This may mean that foreign investors can “overseas financing and overseas exitâ€. Previously, the world-renowned foreign-funded PE institutions such as Blackstone, Carlyle, TPG and others all set up RMB funds in China, but the sources of funds were all from China. Su Shimin, chairman and chief executive officer of Blackstone Group, said earlier that his first RMB 5 billion fund was "completely raised in China." Previously, in 2006, several ministries and commissions such as the SAFE required the approval of approval for the transfer of control of domestic enterprises abroad, which cut off the "two-headed-out" investment model in which foreign PEs have always been good at overseas financing and overseas withdrawal. So obviously, RMB funds became the choice. And in 2008, SAFE issued Circular 142, stipulating that “RMB funds derived from the foreign exchange settlement of capital of foreign-invested enterprises should be used within the scope of business approved by the government ’s approval department. Domestic equity investment. " However, QFLP will change this mode of operation, or the method approved by SAFE to allow international LPs (limited partners) to invest in Chinese equity investment funds. This means that foreign LPs can convert foreign currencies into RMB and invest directly in foreign PE and VC (venture investment fund) institutions in the Chinese market, thereby increasing the source of funds for foreign PE RMB funds. According to the guiding principles of the Shanghai version of the QFLP plan, RMB funds established by approved QFLP can enjoy local fund treatment, but there is a 50% upper limit on the scale of foreign investment. Earlier, the Shanghai version of the pilot program also proposed that once foreign-funded RMB fund managers settle foreign exchange with their own U.S. dollar funds and participate in the fund-raising of RMB funds, the rest of the raised funds will all come from domestic investors and will likely enjoy "national treatment." Officials in Shanghai ’s financial system said that the QFLP pilot will be “not limited to the Pudong New Area†and is expected to be piloted in areas with conditions across Shanghai. The above information source "Venture Investment" is authorized by the China Venture Capital Research Institute (CVCRI) to publish it. All rights reserved. Please indicate the source when reprinting. For more information, please click download to view all articles. For more information, please refer to Guotaian Education Group Contact number 400-609-6665 800-999-3099 E-mail: Mid-Century Modern Coffee Table INCHEE FURNITURE CO.,LTD , https://www.incheehome.com