The Changsha Xinhong Private Equity Fund, the first Qualified Foreign Limited Partner (QFLP) pilot fund in Hunan, was established in Changsha on July 10.

A signing ceremony for the QFLP pilot fund was held at the Changsha Economic and Technological Development Zone. During the event, JQ Securities (Hong Kong) Limited officially inked an agreement with the Changsha Economic and Technological Development Zone Management Committee. With the signing of the agreement, foreign capital equivalent to no less than 1 billion yuan will be introduced to invest in high-tech industries covering new energy, new materials, energy-saving technology, biomedicine, and semiconductor materials.

The new fund dovetails at an advanced level with Changsha's future industrial development directions.  The city of Changsha will take the establishment of the fund as an opportunity to further draw in international capital and sci-tech innovation projects, provide better ecosystem, environment, and services, further boost industrial upgrading, and accelerate the cultivation of new quality productive forces.

The QFLP system refers to programs allowing overseas institutional investors, after obtaining qualification approval and passing other foreign-exchange funds supervision procedures, to convert their overseas capital into RMB funds to invest in private equities or the venture capital market in China.

These programs serve as essential channels for foreign entities to carry out domestic equity investment. They have the advantages of strong driving forces, flexible organizational structures, and multiple profit models, conducive to further promoting investment liberalization and facilitation, making them better able to attract foreign capital.

Source: en.changsha.gov.cn