HAIKOU, September 29. /TASS/. The first investment fund, working with qualified foreign limited partners (under the Qualified Foreign Limited Partner Program, QFLP), has opened in the southern Chinese province of Hainan, reported the Xinhainan website.
The first QFLP fund on Hainan was established by subsidiaries of the Chinese Bank of Communications— BOCOM International Holdings and BOCOM International Equity Investment Management. The new structure aims to support the development of innovative enterprises in the fields of finance, IT and modern equipment. The financial institution's capital amounts to $ 99.98 million.
The QFLP scheme implies that overseas investment organizations that meet the qualification requirements of the Chinese financial control authorities convert foreign capital into RMB funds and invest it in the domestic Chinese private and venture capital markets.
In the future, the Chinese authorities intend to simplify the regulation of transactions with qualified foreign limited partners on Hainan in order to attract even more foreign investors.
Promoting investment freedoms and financial capital flows on Hainan are an essential part of the Chinese government's ongoing project to develop the region.
The authorities presented a plan for the free trade port’s development on June, 1. In accordance with the plan, the Hainan province will be turned into a special customs zone. The country’s government intends in general to wrap up the creation of the free trade port on the island by 2025: by this time the island should acquire a system to ensure free trade and investments.
By 2035, the free trade port and its model will become more solid. By this time, Hainan intends to ensure the freedom of trade and investments, trans-border movement of capital, people and shipping.