2 private equity funds join QFLP program
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Shanghai Daily, June 23, 2011
has approved two more private equity funds to join the pilot Qualified Foreign Limited Partners program.
The program allows the funds to invest money from abroad in China without permission from the country's foreign exchange regulator.
SB China Venture Capital and Shanghai Guosheng CLSA Venture Capital were the latest new comers to the QLFP program after Blackstone, Carlyle Group L.P. and DT Capital Partners received approval in March.
In addition to these large-scale buyout funds, the authorities are also looking to awarding QFLP status to foreign funds that focus investments in new technologies and small start-up firms, Wang Yong, a lawyer at Hankun Law Firm, told JGTZChina, an investment magazine based in Shanghai.
Wang earlier attended a Shanghai government meeting on its QFLP policy, a program now open to foreign private equity funds registered and set up in Pudong New area only.
Apart from those already approved, international buyout firms such as TPG and NYPC are all seeking to join the QFLP program.
Blackstone and Carlyle Group were each awarded a quota of US$100 million while the amount for DT Capital is still pending, according to previous reports.
International limited partners can invest converted capital in QFLP licensed foreign private equity firms.
Although the program helps channel overseas funds into China's private sector, investors are still treated as foreign investors. Thus, such deals require approval from the Ministry of Commerce.
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