On November 1, 2021, Guangdong Financial Supervision and Administration Bureau issued the 'Interim Measures on the Commencement of the Pilot Program of Qualified Domestic Limited Partnership in Guangdong Province.' The new policy aims to promote international investment and increase capital flow in the province.
The measure allows domestic investors to expand their assets abroad and assists foreign actors in taking more shares in the Chinese market. Applicants of the program could establish an overseas investment fund as a corporation, partnership and contractual fund.
Restrictions nevertheless are straightforward. The fund size should not be less than CNY 30 million; investors (domestic or foreign) must invest in direct currencies; underlying assets include but are not limited to private equity, bound, secondary equities and other qualified financial intermediaries.
Although Guangdong wasn't the first to promulgate QDLP/QFLP policies, its economic size and activeness could be crucial to Chinese and foreign investors.