Aerial photo taken on Dec. 27, 2020 shows the Xiongan Railway Station at sunrise in Xiongan New Area, north China's Hebei Province. (Xinhua/Mu Yu)
BEIJING, May 8 (Xinhua) -- The administrative committee of Xiongan New Area on Friday issued a document to encourage the launch of the Qualified Foreign Limited Partner (QFLP) pilot program in the area to provide more convenience for foreign-funded equity investment enterprises, reported www.stcn.com on Friday quoting the official website of the area.
The pilot program aims at creating a quality financial service environment, and attracting qualified foreign investors to convert foreign currency and offshore RMB funds into RMB funds and invest in the form of private equity investment funds.
Under the program, restrictive provisions on enterprises' registered capital, subscribed capital contribution and proportion of initial capital contribution will be removed to guide enterprises to focus on their own professional competence.
No discrimination will be applied to domestic and foreign capital, and the business model of "foreign capital managing foreign capital", "domestic capital managing foreign capital" and "foreign capital managing domestic capital" will be explicitly allowed.
Besides, it makes clear that, in addition to the equity of unlisted enterprises in China, those that meet the negative list management requirements can also invest in the non-publicly developed or traded stocks of listed companies, convertible bonds, market-based and law-based debt-to-equity swaps, and equity fund shares, so as to facilitate the flexible arrangement of "stock plus debt plus equity fund shares" for private equity investment.
(Edited by Gu Shanshan with Xinhua Silk Road, gushanshan.1987@163.com)
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