Performance Magazine - issue 27
Since the launch of Qualified Foreign Institutional Investor (QFII) in 2002, Chinese securities regulator CSRC has put forward half a dozen schemes to encourage capital flow across borders aimed at continuously expanding its market.
To name but a few, since 1 July 2002, China allowed foreign fund managers to participate in joint venture mutual fund management companies in China, and China Merchants Fund, which was founded in December 2002, becoming the first mutual fund joint venture managers established in China. By 2005, foreign investors' can increase their maximum shareholding in a joint venture mutual fund companies in China from 33 percent to 49 percent. As of July 2018, there are 118 mutual fund management companies in total, among which 44 are joint ventures.
QFII and QDII have witnessed a booming growth. According to CSRC, by the end of July 2018, there are altogether 207 QFIIs and 113 QDIIs. According to the State Administration of Foreign Exchange (SAFE), the total approved investment quota for QFII has reached US$101 billion and US$46 billion for QDIIs. In 2008, various municipalities in China also started introducing QFLP programs in attracting foreign private equity managers, which enables foreign private equity managers to raise funds and invest in on shore markets. QDLP is a program for foreign hedge fund managers to raise funds onshore and invest offshore.
In the last Performance issue, we provided a brief overview of the current regulatory framework in China for private securities funds. In this edition, we have three articles covering the Chinese Asset Management Industry: opportunities in the eyes of a veteran industry executive, continued update for the private securities industry in China, and how the regulatory enforcement is taking shape in China from a wellrespected attorney. We hope this provides a balanced update to the current Chinese Asset Management Industry.
- Recent Dynamics of Private Securities Investment Funds in China
- "Chinese-style" regulatory enforcement Essence and trajectory
- Where finance meets industry
- Equity bridge financing Reaping the benefits of liquidity and flexibility
- The EU benchmark Regulation: Users be cautious
- Green finance moving ahead to sustainable
- Regulation as new standalone business line
- European hedge fund managers' views on their prime brokerage relationships