Development of Private Equity Funds with the Financial Opening-up

Published on 2020-10-21

Time for Planing Foreign Equity Funds in China

Since the beginning of 2020, the worldwide spread of COVID-19 has impacted business operations of all industries and greatly interfered with private equity investments home and abroad. In the first quarter of 2020, a year-on-year decline was witnessed in amount and quantity of new funds. From the second quarter, the domestic epidemic situation gradually became stable, and the overall economy is in the process of being steadily recovered.

To create an international first-class business environment under the macroeconomic background of continuously deepening financial opening-up, China has been optimizing policies and promoting investments of foreign private equities in China. 

Tricor China is going to launch a "Developing Foreign Equity Funds in China" series posts, to help you understand the market orientation and give practical advice, to navigate the new opportunities of business expansion together with you.
Latest Main Policies and Implications:
  • On 1 January 2020, the Regulation on the Implementation of the Foreign Investment Law of the People’s Republic of China and the Regulation on Optimizing Business Environment was formally enforced.
According to the Regulations, foreigners will be...... Read more
  • Implementing negative-list management and information reporting system.
At the conference, it was stated that exploring how to reform the management of cross-border private equity investments” would be...... Read more
  • The Reform of Registration Systems of Sci-tech Innovation Board, NEEQ and Second-board Market.
Liquidity issues have been perplexing by private equity investors...... Read more
As presented on the website of the Asset Management Association of China, there had been approximately 15,000 managers of private equities and venture capital funds by July 2020.

As Chinese capital projects become increasingly more open and the opening-up of the Chinese financial market is sped up, we foresee that it will be more convenient for foreign investors to invest in Chinese equity markets. Furthermore, a growing amount of foreign private funds will continuously strengthen their investments in the Chinese financial market. Meanwhile, there will be more professional management teams in the future. Foreign private equity funds with complete risk control systems will be favoured by investors. 

"Developing Foreign Equity Funds in China" series, to be continued......
As Asia Business Expansion Specialist, Tricor has assisted 7 out of 29 WFOE PFM in doing business in China and has accumulated a wealth of practical experience. Learn more about "Developing Foreign Equity Funds in China", welcome to follow our WeChat "Tricor China".

Besides, Tricor Group will be exhibited at the 3rd China International Import Expo (CIIE 2020). We will do relevant sharing on the PE Fund during the CIIE 2020.

Tricor China Financial Services Team
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