First QDPL fund worth $ 61.74 million set up on Hainan

By / TASS / Updated: 11:05,27-August-2021

HAIKOU, August 25. /TASS/. The first QDPL (Qualified Domestic Limited Partner) fund was formally established in Hainan's free trade port on August 23, reported

The size of the fund reached 400 million yuan (about $ 61.74 million). Its creation marked a breakthrough in the construction of a cross-border financial system for the movement of capital in the province. This arrangement allows licensed international asset management firms to raise certain funds from qualified high-income institutions in China to invest in offshore zones.

The QDLP mechanism includes Chinese structures which are allowed to register overseas to invest in hedge funds in overseas markets and raise funds in yuan with their subsequent investment abroad. The implementation of the corresponding program will contribute to the promotion of Hainan's free trade port project. Earlier this month, Hainan released a list of the first group of licensed multinational companies eligible to use the QDLP mechanism.

At the end of September 2020, the first investment fund, working with qualified foreign limited partners (QFLP mechanism) was also set up on Hainan. Among the main goals of the new structure is to support the development of innovative enterprises in finance, IT and modern equipment. The financial institution's capital amounted to $ 99.98 million.

The QFLP scheme implies that overseas investment organizations that meet China's financial regulator qualification requirements convert foreign capital into RMB funds and invest it in domestic Chinese private and venture capital markets.



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