Hainan welcomes first QFLP fund in Haikou Jiangdong New Area
Haikou Jiangdong New Area
Introduced by the Bank of Communications Co., Ltd. (BOCOM in short), the Hainan BOCOM International Technology Innovation Shengxing Equity Investment Partnership Enterprise (limited partnership) has completed its registration in Haikou Jiangdong New Area, making it the first Qualified Foreign Limited Partners (QFLP) fund in the Hainan Free Trade Port. The establishment of the QFLP fund is a significant development to facilitate cross-border investment and financing in Hainan.
QFLP is defined as Qualified Foreign Limited Partnership, which means that a foreign enterprise can participate in the establishment of a foreign-invested enterprise with equity investment, raising funds from home and abroad privately, and participate in equity investment of domestic non-listed companies, so as to further facilitate the inbound investment of overseas institutions.
The BOCOM International Technology Innovation Shengxing QFLP Equity Investment Fund focuses on new-generation information technology industries, including new information technology, financial technology, high-end equipment, and more, with a fund of about 100 million US dollars. It aims to support the development of domestic high-tech enterprises.
The establishment of first QFLP in Hainan Free Trade Port is supported by the joint efforts of the Hainan Local Administration of Financial Supervision, the Hainan Provincial Administration of Market Supervision, the Hainan Branch of State Administration of Foreign Exchange, the Hainan Provincial Bureau of International Economic Development, and the Haikou Jiangdong New Area Administration Bureau.
This year, Hainan is working on new measures aimed at promoting QFLP aggregation and development. Authorities from Hainan Local Financial Supervision Administration said that the bureau is speeding up the introduction of the temporary measures for QFLP, which will require on minimum entry threshold for QFLP enterprises, adopting differential non-discriminatory treatment for domestic and foreign investment, and carrying out a negative list management on investment.
At the same time, the administration will be actively seeking for the support of the State Administration of Foreign Exchange and is working on pilot measures for QDLP to be released within the year. The administration will set no investment quota restrictions on single pilot enterprises and single pilot projects, further clarifying the investment scope of the fund overseas, and providing comprehensive and efficient financial services for two-way cross-border direct investment and financing.