HAIKOU, October 29. /TASS/. The Hainan authorities have published an interim regulation on equity investments involving Qualified Foreign Limited Partners (QFLP), reported the Hainan Daily.

The regulation clarifies the details of the simplified establishment of investment enterprises with the participation of foreign partners on Hainan, as well as the scope of their activities. These companies can register on Hainan after receiving a recommendation from the Chinese authorities or the leadership of one of the key industrial parks of the province. QFLP enterprises do not put forward minimum requirements for admission to registration procedures (for example, in terms of the size of the initial capital contribution).

The QFLP Interim Investment Regulation is an intermediate form of regulation in this area. According to the plans of the local authorities, QFLP companies will be provided with even more benefits, including tax ones. The final version of this provision will be adopted before the end of 2020.

The QFLP scheme implies that foreign investment organizations that meet the qualification requirements of the Chinese supervisory authorities for financial control convert foreign capital into RMB funds and invest it in private Chinese companies.

In September 2020, the first investment fund was established on Hainan to attract foreign investors under the QFLP scheme. It was created by subsidiaries of the Chinese Bank of Communications. Among the main goals of the new structure is to support the development of innovative enterprises in finance, IT and modern equipment. The capital of the financial institution amounted to $ 99.98 million.