Nansha launches QFLP program to attract foreign investment

The Qualified Foreign Limited Partnership (QFLP) pilot program was launched in Nansha on May 12 to encourage foreign investors to get involved in domestic equity investment programs in the area.

The first three pilot enterprises that met the standards of the QFLP were approved and can operate under the program, with a quota of 5 billion yuan ($747million). 

As an important measure introduced to promote foreign currency management reform in Nansha, the QFLP program will facilitate cross-border investment and financing in Guangzhou, creating a better business environment for the city, as well as improving the internationalization and diversification of its financial market. 

It is expected that more foreign capital can be attracted to industries like advanced manufacturing, artificial intelligence, and new energy in the future.

Compared with other pilot areas, Nansha is operating its QFLP program with a higher level of openness and a lower threshold for foreign investment. Under the program, qualified foreign companies are entitled to a wider scope of investment, a freer channel for the flow of funds, simpler registration procedures, and a more flexible way to organize the funds.

These policies will greatly benefit enterprises, especially policies involving the inflow and outflow of funds and foreign exchange that remove some restrictions placed on foreign funds in the past, enabling them to reach domestic companies in need in a much shorter time.

With Nansha putting its QFLP program into effect, it has become one of the few areas in China taking part in both the QFLP and the Qualified Domestic Limited Partnership (QDLP) programs.

To date, 1,666 fund investment institutions have settled in Nansha, accounting for about 20 percent of funds in Guangzhou. Collectively, they have over 441.4 billion yuan ($65.95 billion) in registered capital and a management scale of more than 200 billion yuan ($29.88 billion).