Foreign private equity firms to gain access to Shanghai

Foreign private equity firms will soon be able to establish offices in Shanghai, the city's financial administrator has announced. But any approved firms will be watched closely at first.

The Shanghai Financial Services Office, which is responsible for co-ordinating the city's move toward becoming an international financial centre, said in a recent statement that it will soon allow foreign private equity and growth capital firms to establish wholly-owned subsidiaries or Sino-foreign joint ventures in the city. Approved firms will be allowed to carry out investment and asset management activities with investments made in convertible currency or renminbi.