China Further Opening-up for Foreign Venture Capital to Shore Up Tech Industry

TMTPost--Chinapublishesnewmeasurestopromoteoverseasventurecapitalinvestmentinitstechnologyindustry.

Credit：XinhuaNewsAgency

Chinawillexpandtheopeningupofventurecapitalinvestmentbyrevisingregulationsandboostingaccessibilityforforeigninvestors,thestatemediaXinhuaNewsAgencycitedaraftofmeasuresunveiledbytheStateCouncil,asthecountryaimstodeveloppatientcapital.

Thegovernmentwillrevisetheregulationsontheadministrationofforeign-investedventurecapitalinvestmententerprisestofacilitateforeigninvestorsinengaginginventureinvestmentwithintheterritory,accordingtooneofthemeasures.Supportwillbeprovidedtointernationalprofessionalinvestmentinstitutionsandteamstoestablishrenminbifundswithintheterritory,andleveragetheirinvestmentexperienceandcomprehensiveserviceadvantages.

Thecountrywilldeepenthepilotprogramtofacilitatecross-borderfinancing,furtheroptimizeforeignexchangemanagementunderforeigndirectinvestment(FDI),andfacilitateventurecapitalinstitutionsandotheroperatingentitiestohandleforeignexchangebusiness.Itwillexploreregulationofthepilotmechanismandinstitutionalframeworkofqualifiedforeignlimitedpartners(QFLP),furtherexpandthescopeofthepilotprogram,andguideoverseasventurecapitalinstitutionstocarryoutcross-borderinvestmentinastandardizedmanner.

ThemeasuresunveiledthesamedayinwhichaChineseseniorofficialstressedChinawillfacilitateforeigninvestorsinvestingindomesticsecurities.Chinawillsimplifyandimprovefundmanagementforthedollar-denominatedQualifiedForeignInstitutionalInvestorscheme(QFII)anditsyuan-denominatedsibling,RQFII,ZhuHexin,deputygovernorofthePeople'sBankofChina,saidonWednesday.

"Wearerevisingrelevantfundmanagementregulations,"saidZhu,whoisalsotheheadoftheStateAdministrationofForeignExchange,attheannualLujiazuiForumheldinShanghai.Zhucalledforeffortstofacilitateforeigninvestors'participationindomesticsecuritiesinvestmentandpromotefinancialmarketconnectivity.

ZhuurgedeffortstosupportmultinationalsinestablishingglobalorregionalfundmanagementcentersinShanghai,promotethecross-borderinvestmentbusinessofequityinvestmentfunds,supporttheChinaForeignExchangeTradeSysteminenhancingfinancialinfrastructurefunctionsandrelevantservices,andsupportShanghaiinbuildingahigh-levelinternationalfinancialassetstradingplatform.

ZhuhighlightedShanghai’sroleinfurtherbolsteringChina'sfinancialmarket,statingitisrequiredtoleveragethecity'sleadingroleinpromotingChina'sfinancialopeningup.EffortsshouldbemadetoreplicateandpromoteShanghai'shigh-levelopening-uppoliciestotheYangtzeRiverDeltaandeventhewholecountry,toachievegreaterbreakthroughsintheintegrateddevelopmentoftheYangtzeRiverDeltaandforgenewadvantagesforanopeneconomyatahigherlevel,Zhusaid.

TheChinaSecuritiesRegulatoryCommission(CSRC)willworkwithrelevantpartiestocreatefavorableconditionstoattractmoremedium-andlong-termfundsintothecapitalmarket,WuQing,headofthecommission,saidatthesameforuminShanghai.

ThecommissionledbyWurolledoutnewmeasurestofurtherreformitsSTARmarkettobetterservesci-techinnovationandpromotethedevelopmentofnewqualityproductiveforces.Themeasureswillfocusonimprovingtheboard'sinstitutionalmechanismsforissuanceandunderwriting,mergersandacquisitions,equityincentives,andtrading.Oneofthemajormeasuresistofurthersupportthelistingofenterprisesmakingbreakthroughsinnewindustries,newbusinesspatternsandnewtechnologies,andimprovingthepricingmechanismsforinitialpublicofferings(IPOs)