Fundraising From China For Offshore Assets

Traditionally, it has been difficult for offshore fund manager or offshore venture capital to conduct fundraising in China, due to China's foreign exchange control. The Qualified Domestic Institutional Investor ("QDII") program, which was established in 2006, is commonly considered being restricted to the needs of retail investors. However, various local governments started to relax restrictions on RMB foreign investment by launching pilot alternatives in the following years. In 2013, Shanghai launched the Qualified Domestic Limited Partner ("QDLP") program, followed by other cities like Tianjin, Chongqing, Qingdao and Shenzhen, notably the Qualified Domestic Investment Enterprises ("QDIE") program launched by Shenzhen.