Shanghai is committed to further opening up financial investments in both directions with multiple measures such as promoting Qualified Foreign Limited Partner (QFLP) and Qualified Domestic Limited Partner (QDLP) pilot programs, with the aim of accelerating the construction of the city in global asset management. center, according to a document released by the local government on Tuesday.
The city will encourage foreign institutions to participate in the QFLP pilot program to manage domestic yuan funds and encourage qualified domestic institutions to get involved in the program.
Under this program, QFLP pilot institutions will be encouraged to invest in multiple sectors, including domestic unlisted company equity, private placement and listed company mezzanine funds and venture capital funds.
Shanghai will support well-known foreign asset management institutions and qualified domestic institutions to apply for the QDLP, and help these pilot institutions to invest in sectors such as foreign private funds, equities and the rights of creditors of non-companies. listed, the securities market, bulk commodities and financial derivatives.
Shanghai will also seek to encourage foreign-invested asset management institutions to use one entity to subscribe to the QDLP and the entire Foreign-Invested Enterprise Private Fund Management (WFOE PFM) program.
To stimulate the management of cross-border two-way investments, the city will also support the pilot institutions to set up global or regional management centers in the city, and will encourage the city’s asset management institutions to establish, buy and participate in foreign asset management institutions.
Additionally, residents will be able to assess cross-border financial management as the city will explore ways to establish such channels by deepening the Bond Connect program to enable investors from mainland China and overseas to trading in the bond markets of the other, Shanghai-Hong Kong. The Stock Connect and Shanghai-London Stock Connect programs, according to the document.