Aerial photo taken on May 3, 2021 shows city view in Haikou, capital of south China's Hainan Province. (Xinhua/Yang Guanyu)
BEIJING, May 31 (Xinhua) -- Local authorities in south China's Hainan Province recently revealed that the first batch of applications for the overseas investment by Qualified Domestic Limited Partner (QDLP) pilot program will close on June 18, calling on potential companies to submitting applications before the deadline, reported Hainan Daily last Friday.
Hainan authorities issued interim rules on pilot program for overseas investment by QDLP in last October, aiming to promote financial innovation and expand investment opportunities for cross-border investors, as well as further meet domestic investors' demand for global asset allocation.
The interim rules point out that pilot fund management companies with registered capital of at least 5 million yuan or the equivalent of foreign currency will be qualified to apply for the QDLP.
Meanwhile, the applicant of QDLP, namely any entity including the controlling shareholder, the actual controller or the managing partner of the relevant enterprise, shall have a record of not being subject to any significant punishment by the local authority in the last one year.
Hainan's QDLP pilot fund covers a wide range of overseas investments, including equity and bonds of overseas non-listed companies, non-publicly issued and traded stocks and bonds of overseas listed companies, as well as overseas equity investment funds and securities investment funds, overseas commodities and derivatives.
As long as the applicant does not exceed the quota limit of Hainan's QDLP, a single pilot fund management company and a single project can enjoy an unlimited quota, while the specific QDLP pilot quota for the project will be approved according to the actual needs of the project.
The interim rules also highlight the flexibility of Hainan's QDLP pilot program, which allows fund management companies to set up multiple pilot funds and adjust the amount of the funds' outbound investment, as long as the sum of the investment quota of each pilot funds is within the approved quota.
Comparing to the pilot program of QDLP in Shanghai and other places, Hainan's QDLP pays more attention to the internal control and management of QDLP fund management enterprises, the qualification of related parties and other substantive requirements, according to the Haikou Branch of the People's Bank of China (PBOC).
(Edited by Jiang Feifan with Xinhua Silk Road, 346129473@qq.com)
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