Foreign investment PE policy pilot launches Binhai New Area will be pilot first (VC328)

Tianjin Binhai New Area's financial reform and innovation in the area of ​​equity investment funds has received policy support again. A few days ago, Tianjin Development and Reform Commission, Municipal Finance Office, Municipal Commerce Commission, and Municipal Administration for Industry and Commerce jointly issued the “Interim Measures for the Pilot Work of Foreign-Invested Equity Investment Enterprises and Their Management Institutions in this Municipality” and its implementation rules. Invested equity investment funds and equity investment fund management enterprises shall be regulated in detail in terms of establishment, fund raising and investment, risk control, information disclosure, and record management. The Measures stipulate that this pilot work is encouraged to be tested first in Binhai New Area.

It is reported that the promulgation of the "Measures" and its implementation rules are aimed at attracting foreign investors to invest in strategic emerging industries in the city, introducing advanced management and operation experience of overseas mature equity investment enterprises and their management institutions, in order to cultivate local equity investment enterprise management Institutions and talents to encourage pilot enterprises to invest in Binhai New Area.

The Measures stipulate that the pilot enterprises shall be established in the form of company systems and limited partnerships; the equity investment management institutions shall have paid-in (paid-in) capital of not less than 10 million yuan or foreign currency equivalent; and apply for pilot equity investment companies overseas The investor, in the previous fiscal year before its application, had a scale of its own assets of not less than US $ 500 million or a scale of managed assets of not less than US $ 1 billion. The Measures also require that each overseas investor contributes at least US $ 10 million in the pilot equity investment enterprise. Investors from the Hong Kong Special Administrative Region, Macau Special Administrative Region, and Taiwan region who invest in the establishment of equity investment enterprises and equity investment management institutions in this city to participate in the pilot program will refer to these Measures.

The Measures pointed out that the funds of equity investment enterprises and pilot equity investment enterprises initiated by the pilot equity investment management institutions must meet the requirements of this document for custody at the custodian bank. The custodian bank should have: the qualifications of a designated foreign exchange bank and the qualification for operating RMB business; the qualification of securities investment fund custody business; the establishment of a special custody department and sufficient professionals familiar with the custody business; the conditions for safe custody of corporate property and the satisfaction of custody Fixed locations required for business, equipped with independent security monitoring system; equipped with independent custody business technology system and safe and efficient clearing and delivery system; with perfect internal audit monitoring system and risk control system; no serious violation of foreign exchange management regulations in the past 3 years Records of major violations of laws and regulations; the custodian bank must sign a pilot strategic cooperation agreement with the municipal record office.

Specific requirements for custodian banks: Require custodian banks to coordinate with the municipal filing office to supervise the operation compliance of pilot enterprises; assist foreign exchange administrations to supervise the foreign exchange capital and implementation of pilot enterprises; assist pilot enterprises in project equity investment, and during the investment process Fund management; custody of all assets of the pilot enterprise; as a clearing bank for the settlement and sale of foreign exchange funds of the pilot enterprise; to the municipal filing office to guarantee each investment project and information of the settlement and sale of foreign exchange of the pilot enterprise.