On 24 December, the Shanghai Financial Service Office, the Shanghai Municipal Commission of Commerce and the Shanghai Administration for Industry and Commerce promulgated the Work Carried Out in Pilot Projects of Foreign-funded Equity Investment Enterprises Implementing Measures, marking the formal launch in Shanghai of the so-called qualified foreign limited partner (QFLP) pilot projects.
The Implementing Measures lay down clear regulations for foreign-funded equity investment enterprises (FFEIEs) and foreign-funded equity investment management enterprises (FFEIMEs) regarding their organizational forms, business scope, conditions and procedures for establishment, fund custody, investment management and daily supervision.
The brightest spot is that the Implementing Measures lay down a system for pilot foreign-funded equity investment enterprises and give them a significant amount of flexibility as regards settlement of capital funds and investment.
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