China: An overview of the QFLP pilot program and expectation

In brief

The Qualified Foreign Limited Partnership (QFLP) is a pilot program developed by various local authorities serving as an essential channel for foreign investors to invest in China's financial market. Under QFLP, foreign investors are able to participate in the establishment of a foreign-funded equity investment management enterprise (QFLP Manager) or a foreign-funded equity investment enterprise (QFLP Fund) (QFLP Manager and QFLP Fund are collectively referred to as QFLP Enterprises). The most obvious advantage of QFLP is that foreign exchange funds can be settled in RMB at the fund level and make equity investment in RMB, in other words, foreign exchange settlement will be approved in advance at the time when a QFLP enterprise is set up, instead of when the capital is called.


Contents

QFLP was firstly introduced in 2010 in Shanghai and then consecutively available in Beijing, Chongqing, Tianjin, Shenzhen, Qingdao, Guizhou, Pingtan, Zhuhai, Guangzhou, Xiamen, Suzhou, Hainan, Nanning, Xiong'an, Nanjing and thereafter more cities or regions. Based on the different development history and practical needs of cross-border investment, the approaches to QFLP across different cities or regions have their own characteristics. Under this background, how to select the appropriate QFLP pilot shall be the primary issue for foreign investors.

Click here to access full alert.

* * * * *

LOGO BM-FenXun bold-RGB (003)

Baker & McKenzie FenXun (FTZ) Joint Operation Office is a joint operation between Baker & McKenzie LLP, an Illinois limited liability partnership, and FenXun Partners, a Chinese law firm. The Joint Operation has been approved by the Shanghai Justice Bureau. In accordance with the common terminology used in professional service organisations, reference to a "partner" means a person who is a partner, or equivalent, in such a law firm.  This may qualify as “Attorney Advertising” requiring notice in some jurisdictions.  Prior results do not guarantee a similar outcome.

This client alert has been prepared for clients and professional associates of Baker & McKenzie FenXun (FTZ) Joint Operation Office. Whilst every effort has been made to ensure accuracy, this client alert is not an exhaustive treatment of the area of law discussed and no responsibility for any loss occasioned to any person acting or refraining from action as a result of material in this presentation is accepted by Baker & McKenzie FenXun (FTZ) Joint Operation Office.
 

Contact Information
Jocelyn Chen
Associate at BakerMcKenzie
Shanghai
jocelyn.chen@bakermckenziefenxun.com
Lucca Li
Associate at BakerMcKenzie
Shanghai
lucca.li@bakermckenziefenxun.com

Copyright © 2022 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.