What’s new: The State Administration of Overseas Change (SAFE) is contemplating loosening some restrictions on cross-border funding underneath its Certified Overseas Restricted Partnership (QFLP) program, a deputy SAFE head instructed a briefing (hyperlink in Chinese language) in Beijing on Friday.
Wang Chunying stated that the foreign exchange regulator is learning a pilot reform plan for the QFLP program to chop crimson tape, develop the vary of funding open to overseas buyers and discover a mannequin for personal fairness funds’ cross-border financing and funding actions.
What’s the background: The QFLP program permits overseas institutional and particular person buyers to spend money on Chinese language property by fund managers, whereas the Certified Home Restricted Partnership (QDLP) program provides home buyers entry to overseas funding alternatives.
The QFLP program was first piloted in Shanghai in 2011, adopted by cities together with Beijing, Tianjin, Chongqing, Shenzhen, Zhuhai, Guangzhou, Qingdao and Guiyang.
In June, the Beijing municipal authorities and different state our bodies issued a guideline (hyperlink in Chinese language), which permits certified overseas establishments in Beijing to check the QDLP program and lift cash from home buyers for funding abroad. The rule of thumb additionally helps a trial of overseas establishments changing into concerned within the cross-border switch of banks’ dangerous property.
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