Overseas investors, including those from Hong Kong SAR, Macao SAR, and the Taiwan region, can apply to invest in equity investment enterprises in Guangdong-Macao In-Depth Cooperation Zone in Hengqin and conduct equity investment and other businesses in the Chinese mainland. The measure will be valid from January 29th of 2022.
According to the document, there will be no limitation regarding the scale of foreign shareholders or partners' management assets, the scale of their assets, and the holding of financial licenses. While In terms of registered capital contribution, there are no restrictions on the registered capital, initial capital contribution ratio, and capital contribution period of foreign investors.
Qualified investors can launch businesses, including investing in shares of unlisted companies, non-publicly issued or traded stocks of listed companies, convertible bonds, market-oriented and legalized debt-to-equity swaps, equity fund shares, as well as participation in allotments as original shareholders of listed companies. In addition, pilot companies can also invest in domestic private equity investment funds and venture capital funds (FOF).
According to the measure, pilot companies should be private equity institutions and go through the registration of private equity fund managers and private equity fund filing procedures with the China Securities Investment Fund Industry Association.
Editor: Olivia, Jerry