(CFP Photo)

A pilot program of qualified foreign limited partner (QFLP) has been launched in the Nanjing Area of the Jiangsu Pilot Free Trade Zone, according to a circular released by the Financial Supervision and Administration Bureau of Nanjing City and the Jiangbei New Area Administrative Committee.

The pilot scheme is applicable to domestic, wholly foreign-owned or joint venture enterprises that have registered as private equity fund with the Asset Management Association of China as well as newly established private equity and venture capital enterprises that meet the requirements. As a general principle, these companies need to be registered in the Nanjing Area.

A QFLP fund may make investment in equity of non-listed companies, investment in directed issuing of new shares and bulk trading of listed companies, domestic private equity, venture capital funds and other businesses permitted by laws and regulations.

Compared with other Chinese cities, the QFLP program in Nanjing Area provides greater support in terms of the business model of fund management enterprises, the scope of qualified overseas investors and the investment area.