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CHINA 2013 REGULATION
REGULATION CHINA 2013
QDLP: A SIGNIFICANT INITIATIVE
Looking ahead, perhaps the most significant regulatory development influencing the longer-term evolution of the Chinese hedge fund industry is the Qualified Domestic Limited Partnership (QDLP) initiative. This is a pilot scheme, currently restricted to Shanghai, allowing global hedge fund managers to set up Shanghai-based, foreignowned private fund management companies and onshore QDLP funds. These onshore managers and QDLP funds would then be licensed to raise renminbi funds from local high-net-worth individuals which would then be converted into foreign currencies and invested in hedge funds outside China. “This is significant because it is the first time ever that any foreign financial institution – hedge fund or otherwise – has been authorised to fund-raise in renminbi from Chinese investors in China,” says Tse at Boss & Young. Hubert Tse, a partner That makes the QDLP an important step forward at Boss & Young for international asset managers with their sights >> What is also very trailed on the potential of a market of 1.3 billion significant about the QDLP people and trillions of dollars in household savings. But as Tse says, it is also a noteworthy landmark in initiative is that it shows the broader build-up of China’s financial services how supportive Beijing industry. “What is also very significant about the is of Shanghai’s ambitions QDLP initiative is that it shows how supportive Beof becoming an ijing is of Shanghai’s ambitions of becoming an international financial centre commensurate with the international financial economic strength of China and the international centre commensurate status of the renminbi by 2020,” he says. “This also with the economic reflects China’s long-term commitment to opening strength of China and the the capital account and internationalising the RMB.” international status of Springs Capital’s Tian says the scope of the QDLP initiative needs to be k \ [? \??X?]?K?8?']8?&\?Y?]H ?[?Z[??H?H ? ????][ HHX[ H ?Y?[?? H[? \? ?K8?'H ?H ?^\????X?X[?\??\ [X?\? ? L°?HY?Q?[?[?[Y?[??B???'?]?? H[?Y[? H ?? [Y\?[??? ?Y\?H ?[ ?\?H ?X[ ??]\? ?[X??X? ?]\? [?X]\?X[ ??'H]\?H?Z\? ?[? ??? H [YH?Z[??? H ?^X?[??\?]?H?Y[?\??YY ???ZY?\??]X[?Y?\?? [?\? HQ ??[YKXX? ?]HZ[?\??[H ][?H?
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