News & Insights

Mainland China briefing: recent developments in cross-border channels: Shanghai improves its QFLP and QDLP schemes

On 25 May 2021, the Shanghai government published the Several Opinions on Accelerating the Construction of Shanghai Global Asset Management Centre (the Opinions, available here in Chinese). The Opinions, which came into effect on 1 June 2021, reflect Shanghai’s goal to build the city as a global asset management centre.

As set out in the Opinions, the Shanghai government plans to improve its Qualified Foreign Limited Partner (QFLP) pilot scheme (first introduced in 2011) and Qualified Domestic Limited Partner (QDLP) pilot scheme (first introduced in 2012), including encouraging eligible domestic institutions to participate in the QFLP pilot program and supporting overseas asset management institutions and eligible domestic institutions to apply for QDLP qualification. The government also plans to encourage QFLPs to manage domestic Renminbi funds; to invest in shares of domestic unlisted companies; and to participate in private placements by listed companies, private equity and venture capital funds. For the QDLP scheme, the plan is to encourage QDLPs to invest in overseas private funds, equity and debt of unlisted companies, securities market, commodities and financial derivatives.

It is worth noting that for the first time, the Opinions allow foreign asset management institutions to use the same entity to operate its QDLP and wholly-foreign-owned-enterprise private fund management (WFOE PFM) business.

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Taylor Hui

Partner | Financial Services

Email or call +852 2826 5368

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