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Shanghai welcomes foreign private equity investment

Qualified institutional investors given easier access to onshore markets

Issue: February 2011

Keywords (click to search): Shanghai QFLP private equity Kirkland & Ellis O'Melveny pilot

Foreign private equity (PE) investors should be aware of restrictions, governing laws and statutory requirements now that they are able to access onshore capital markets and are privy to relaxed foreign exchange controls, say counsel.

On January 11, three Shanghai governmental agencies jointly introduced a pilot programme that allows qualified foreign PE firms to raise funds denominated in renminbi (Rmb) and enjoy limited currency conversion rights.

Effective on January 22, the Implementing Measures for the Launch of a Pilot Foreign-invested Equity Investment Enterprise Project in the Municipality (上海市关于本市开展外商投资股权投资企业试点工作的实施办法) enables foreign PE fund managers to set up equity investment enterprises and...

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