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Taizhou city launches pilot to attract foreign investment

LMS| Updated: May 30, 2024

Company Taizhou Xincheng Equity Investment Management Co Ltd received approval for Qualified Foreign Limited Partnership, or QFLP pilot status on May 22 – becoming the first enterprise to do so in Taizhou city, located in China's East Jiangsu province.

QFLP status allows foreign investors to establish equity investment firms in China, raising funds privately to invest in unlisted domestic companies.

This development comes in the wake of the directive issued last August by the State Council – China's cabinet – to optimize the foreign investment environment and support QFLP pilot projects.

In February, several local government agencies issued Taizhou QFLP pilot measures, establishing a mechanism for the pilot.

The Taizhou bureau of commerce has actively promoted the policy, conducting outreach and training sessions to 19 key industrial parks to accelerate the pilot's implementation.

The first pilot enterprise, Taizhou Xincheng Equity Investment Management Co Ltd, was established by JQ Securities (Hong Kong) Limited. Following its approval, the company will set up a QFLP fund in Hailing district to attract foreign investment to local specialized and new businesses in sectors like new energy, semiconductors and new materials.

"This initiative allows foreign investors to share in Taizhou's development opportunities, bringing vital capital for high-quality growth in the manufacturing sector and reducing local firms' fundraising costs," said Han Chao, director of the Taizhou financial supervision bureau.

Geng Xiaoli, director of the Taizhou bureau of commerce, said the QFLP pilot was in line with national reforms requirements and Taizhou's goal of higher-level openness.

"It promotes cross-border investment and showcases our commitment to attracting foreign capital, driving high-level openness from an institutional perspective," Geng added.

Moving forwards, plans are for the bureau of commerce to continue working with municipal departments to attract top asset management firms and guide significant projects to Taizhou, ensuring that the QFLP pilot yields substantial results and drives industrial innovation.

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