On November 1, Guangdong issued a temporary measures to expand the Qualified Domestic Limited Partnership (QDLP) scheme from Shenzhen to the whole province. The program allows foreign and domestic asset managers to raise RMB from high net worth and institutional investors in China for the purposes of overseas investments.
(Photo / Southcn.com)
It will further promote the opening of the capital market, accelerate the establishment of a new open economic system, as well as boost the development of the Greater Bay Area.
"Compared with the traditional foreign investment, the QDLP pilot has further expanded the entities and scope of investment. The operators are mainly private equity institutions, and the investment becomes more flexible covering both the primary market and the secondary market," said Tong Shiqing, deputy director-general of the Guangdong Financial Supervisory Authority, at a press conference highlighting details of the measures.
Investors in the province can not only invest in overseas unlisted equity and debt, but also in overseas securities markets and other approved investment businesses.
According to the Measures, the registered capital of pilot enterprises in not less than RMB 10 million (or equivalent foreign currency), and the company should employ at least one major investment manager with more than 5 years and two investment managers with more than 3 years of overseas investment management experience. It is required that the subscribed capital or initial raised funds should not be less than RMB 30 million.
The QDLP pilot will provide financial products and services that meet the wealth management needs of residents and enterprises, and help Guangdong enterprises to go global, added Tong. What's more, the expanded program can strengthen cross-border financial cooperation and innovation.
Guangdong has also become the first province in the country to delegate the authority to lower levels of financial supervisory authorities (such as Guangzhou, Zhuhai and the Guangdong-Macao in-depth cooperation zone in Hengqin) for examination and approval.
Editor: Keane, Jerry