Shanghai Officially Releases Pilot RMB Private Equity Funds Implementation Measures

Kicking off 2011 with a new regulatory breakthrough for RMB funds, the Shanghai Municipal Financial Services Office released the long-awaited Implementation Measures on Pilot Program of Foreign-invested Equity Investment Enterprises in Shanghai (the "Pilot Measures"), officially dated December 30, 2010. The Pilot Measures is a product of long and intensive coordination by the Shanghai Municipal Financial Services Office with the Municipal Commission of Commerce, the Municipal Administration of Industry and Commerce and other key authorities such as the Shanghai State Administration of Foreign Exchange.

Shanghai is now the first city in the nation to create a unified authority to specialize in and handle emerging operational issues for RMB funds on this scale. This authority is called the Joint Conference for Pilot Program of Equity-Investment Foreign Invested Enterprises and includes all of the regulatory authorities necessary to facilitate the operations of RMB fund