A coalition of 10 Chinese government bureaus, including the Ministry of Commerce, Ministry of Foreign Affairs, National Development and Reform Commission, Ministry of Science and Technology, and Ministry of Industry and Information Technology, have jointly issued a comprehensive policy to bolster overseas institutions investing in domestic technology companies.
The policy encompasses 16 specific measures aimed at optimizing management services, increasing financial support, enhancing cooperation and integration, and refining exit mechanisms. Key measures include:
- Streamlined Applications: Efficient and lawful approval of Qualified Foreign Institutional Investor (QFII) and RMB Qualified Foreign Institutional Investor (RQFII) applications.
- Foreign Exchange Management: Support for overseas institutions to invest in domestic tech firms through Qualified Foreign Limited Partner (QFLP) and centralized cross-border fund operations to improve efficiency and reduce costs.
- Differentiated Supervision: Equal treatment and differentiated supervision for overseas institutions establishing venture capital funds in China.
- Bond Issuance Support: Support for eligible overseas institutions to issue RMB bonds in China for tech investments.
- Expanded Financing Channels: Legal and regulatory support for tech firms invested by overseas institutions to issue corporate credit bonds and promote cross-border financing pilots.
- Financing Structure Optimization: Encouraging domestic banks to cooperate with overseas institutions and explore business models like “loans+external direct investment.”
- Cooperation Mechanism Improvement: Implementing special projects to integrate science, technology, industry, and finance, and leveraging guidance mechanisms.
- Demand List Compilation: Assisting in promoting cooperation between enterprises and overseas institutions.
- Enhanced Cooperation: Encouraging cooperation in emerging fields like biotechnology through fund of funds or specialized sub-funds.
- Visa Facilitation: Providing a “green channel” for short-term visa applications without reservation or fingerprinting.
- Localized Operations Encouragement: Supporting overseas institutions to increase investments, establish offices, and form teams in China.
- Overseas Listing Support: Leveraging Hong Kong’s financial market connectivity to support tech firms’ Hong Kong listings.
- M&A Encouragement: Supporting listed companies to use various payment tools to acquire tech firms.
- Private Equity Fund Share Transfer Pilot: Promoting the pilot of private equity fund share transfers.
- Income Repatriation Assurance: Ensuring the legitimate income of overseas institutions is freely remitted in RMB or foreign exchange.
- Tax Incentive Access Facilitation: Streamlining dividend withholding and settlement procedures for listed companies to distribute dividends directly to overseas institutions under preferential tax treaty terms.- Flcube.com
