ANNOUNCED AS TEMPORARYNo
FDI: Entry and ownership rule
On 10 January 2011, Shanghai Industry and Commerce Administration Bureau released the Implementation Measures on Pilot Program for Foreign Invested Equity Companies (Shanghai Finance Ban Notice '2010' NO.38).
In accordance with this document, qualified foreign limited partners are permitted to convert their foreign currencies into RMB yuan to make private equity investment. Overseas sovereign wealth funds, pension funds, insurance companies are among the institutional investors that will be allowed to directly invest.
The State Administration of Foreign Exchange (SAFE) had approved the initial $3 billion for the Pilot Program in Shanghai. This would be an important step for foreign institutions to make private equity investment, which will simplify the procedure and exclude foreign exchange hurdles when making investment in private equity.
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