Shanghai has approved another seven institutions—including IDG Capital and Brookfield—for the qualified foreign limited partners (QFLPs) investment scheme, which allows foreign funds to buy shares in unlisted companies and launch yuan-denominated venture-capital products, reports the South China Morning Post.
A signing ceremony was held on the sidelines of the Lujiazui Forum, the mainland’s most influential financial conference, which normally draws China’s top financial and securities regulators, as well as top bankers and financiers. These seven institutions will conduct investment and fundraising activity in the city’s Lingang free-trade zone, a 120 sq km coastal area linked to the Yangshan Port by the Donghai Bridge.
The firms will help promote the QFLP programme, as Shanghai is “determined to conduct innovations in the finance sector at Lingang”, the Shanghai Financial Regulatory Bureau said in a statement on Thursday. The other newly approved QFLPs include Vitalbridge, Cathay Capital, Kasikornbank, Ausvic Capital and CM Venture Capital.