Shanghai QFLP pilot disease into the first batch of 3 pilots each have a plan

Chen Zhi Shanghai reported that Shanghai QFLP has entered the real operation stage.　　At this time of January, Shanghai issued "on the city to carry out foreign-invested equity investment enterprises in the implementation of the pilot work" (hereinafter referred to as "QFLP") has been four months. Carlyle Fosun Fund, Blackstone Group and German capital have become the first batch of "QFLP settlement Pilot" enterprises.　　People familiar with the matter said that Carlyle Fosun and Blackstone Group each received 100 million U.S. dollars settlement amount, Germany and the capital to launch an equity investment fund, the specific amount of settlement depending on the fund to raise capital.　　The big curtain opens, the pilot QFLP foreign PE can enjoy the national treatment, the settlement investment and the tax burden cost can bring how much convenience, still unsolved mystery.　　Gototimes Lyon's absence of national treatment and tax burden cost has become one of the important factors for foreign fund managers to decide whether to participate in the trial of QFLP settlement. "The first project investment has entered the settlement approval stage." At the end of last year received 100 million U.S. dollars in settlement quota. "But the specific project investment time, also depends on the settlement approval process." "A person involved in the Shanghai QFLP policy interpretation meeting, said that the current QFLP settlement amount of foreign equity investment funds, only in the project investment can be settlement." The specific process is the above-mentioned fund managers to the custodian bank issued a settlement order, the custodian bank for settlement and investment funds to the invested enterprise account.　　Shanghai is currently QFLP's custodian bank for Pudong FA Bank. "But as a foreign investor, the participation of investment projects in the pilot institutions is in line with the" Foreign Investment Industry Guidance catalogue "restrictions, how to pass the Ministry of Commerce by the pen-and-click Approval, but is unknown.　　The head of a foreign accounting institute said. "Custodian banks and related departments will now work together for project approval, but the approval of the settlement of funds, no need for the foreign Exchange Authority on each project required settlement amount of the amount of approval, time has been much faster."　　The Carlyle Fosun said.　　Carlyle Fosun Fund originally raised the amount of 100 million U.S. dollars, has now achieved the same amount of settlement, means that the proportion of foreign investment can reach 100%, breaking the original market rumors of the 50% ceiling. "At present, QFLP Pilot enterprises do not have a mandatory proportion of foreign capital."　　The attendees said. But the first batch of pilot enterprises, but unexpectedly no State sheng Lyon 10 billion yuan fund figure.　　At the end of last year, they also got the pilot qualification.　　Previously, in order to prepare for QFLP, Guo Sheng Group and CLSA jointly launched a renminbi fund to accumulate fund management experience and project reserves. "The main reason is that the Gototimes Lyon fund initially considered the fund managers to contribute part of the settlement through the QFLP, while the Fund Limited investor (LP) is inclined to domestic enterprises, to ensure that the Fund enjoys national treatment." "According to the current QFLP policy, foreign equity investment funds participating in the pilot scheme are considered to be foreign investors with the exception that all the contributors are from the mainland and only the fund manager (GP) is funded by the Settlement fund and below 5% per cent," a person familiar with the matter said. ”　　In terms of investment scope and project approval process, it is one of the important factors for foreign fund managers to decide whether to participate in the pilot QFLP settlement. The reporter learned that Blackstone Group temporarily did not use the 100 million dollar settlement quota plan. "On the one hand, Blackstone Group China Development Investment Fund 5 billion has been completed, short-term no expansion of the plan, on the other hand, considering the national treatment of the fund, the investors are all from domestic enterprises."　　"The Blackstone Group explained. "Whether it is the investment in settlement, taxation, the scope of the Fund's project investment in line with the" Foreign Investment Industry Guidance catalogue ", foreign investors must understand again.　　German capital partner Shaw told reporters.　　In addition to the "national treatment", foreign investors participate in settlement investment tax burden costs, is also an important factor. The participants revealed that the current foreign investors to withdraw the tax, mainly the LP should bear 20% of all taxes and 5–10 withholding tax, the comprehensive tax burden of about 25%-30%, compared to overseas investor in tax havens in the low tax is still high.　　and QFLP stipulates that the investment income and principal of the pilot foreign Equity investment fund will return to the custodian bank's RMB income special account after the project exits, and no further domestic investment can be made.　　QFLP's door is quietly open, despite the stringent capital-use process and high taxes. The reporter learned that the safe and Shanghai related departments did not frame the Shanghai QFLP 3 billion U.S. dollars foreign exchange settlement quota, "the current policy is still a mature batch, approved a batch." At present, the new QFLP pilot Foreign Equity Investment fund has been approved. "In addition to large mergers and acquisitions funds, the current QFLP selection criteria will spread to technology-based, entrepreneurial SME equity investment funds," said the participants.　　"Foreign PE concerns the identity of foreign-funded RMB funds in different cities in China is still" fuzzy zone.　　Although the market rumors of Beijing, Tianjin, Chongqing are brewing QFLP policy, wenfengerdong Foreign equity investment funds have already taken the lead in the layout. At the beginning of April, the Israeli Flying Infinity Fund decided to launch a foreign private equity fund with an expected scale of $2 billion in the Zhongqing River area, including 1 billion U.S. dollars and 6 billion yuan.　　The fund said to reporters that, in accordance with the Fund's current fund-raising planning, in the RMB fund fund-raising structure, 3 billion yuan from the Zhongqing government-directed funds and domestic enterprises, and another 3 billion yuan to consider the use of similar QFLP model from overseas investors to raise. "Because Zhongqing has not promulgated the relevant QFLP implementation rules, raises the capital from the overseas 3 billion yuan funds how to build the fund structure, but also depends on the local policy."　　"he said. However, foreign equity investment funds via similar QFLP model to infiltrate the Chinese market, there is a precedent. The concrete way is to register a company fund and a foreign-funded enterprise in the local city first, and then settle a certain fund in the latter's capacity, and then castto the former. "The project investment of the above-mentioned company funds is still regarded as a foreign investor, and only the fund tax can be obtained through consultation with the local government to obtain the tax treatment of the Partnership Fund." "A partner in a foreign PE fund with similar operational experience said to reporters," but in the specific operating process, foreign investors are most concerned about the regulation of capital access and fund operating norms, as well as related legal issues. "In the recent Shanghai QFLP Policy interpretation meeting, the relevant department heads once again stressed that the Shanghai QFLP clause stipulates that the approved pilot foreign-invested equity investment Management enterprise may use the foreign Exchange fund to invest in the equity investment enterprise which it initiates to establish, the amount does not exceed 5% of the total amount of collected funds,　　This part of the investment does not affect the original property of the invested equity investment enterprise "has been recognized, that is, as long as the other 95% of the LP is domestic investors, even if the GP contribution of 5% in the United States dollar settlement, will not affect the Fund's internal status."　　This provision is "recognized", Hard-won.　　Earlier, Prax investment (Prax Capital) decided to put two real estate investment and equity investment RMB funds settled in Tianjin, it is because of the different departments in Shanghai to foreign funds of the identity of the renminbi is still "fuzzy zone." "PE management company registered abroad, set up a fund management company in China, the company as a GP, and LP formed a family of fund management companies, the company was identified as a local company or a foreign company, in different parts of the country still have different interpretations." "The director of a foreign equity investment agency said to reporters," Tianjin believes that as long as the GP dollar settlement investment within 1%, should belong to the renminbi fund, so the fund's project investment will be basically not under the "Foreign Investment Industry Guidance catalogue" restrictions. "But ultimately we are based on policy considerations, or in the form of renminbi."　　Prax investment partner Jeff said.　　However, the above provisions may not appear in Beijing's upcoming QFLP clause. "After all, safe's notice on perfecting the operation of foreign exchange capital payment and settlement management of foreign investment Enterprises" ("142th") has a certain conflict with the above provisions, the former restricts the investment in capital settlement of foreign invested enterprises, and requires the consultation between the local authorities and the foreign authority.　　People familiar with the matter said. Nevertheless, Beijing's push for QFLP policy is still in step. The reporter learned that this week, Beijing Financial office will announce foreign PE record list, the market rumors part of the record foreign Equity investment fund will become "Beijing version" QFLP first pilot enterprises.