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The Far East Just Got Closer for Foreign Venture Capital and Private Equity Funds

By Ryan Roberts

Private Equity HUB is reporting that Shanghai will allow foreign venture capital and private equity funds to register legally as local equities investment firms:

Foreign investors with a focus on Chinese equities can set up a Shanghai-registered entity with initial capital of 100 million yuan ($14.56 million) or more with the legal status of a local investment company and receive special tax treatment, according to a city government document dated Aug. 11 and obtained by Reuters on Friday.

Qualified foreign investors would include private equity funds, venture capital funds, buyout funds and hedge funds, it said.

This is another instance of Chinese cities (Beijing & Tianjin) attempting to lure more overseas investment, as there currently is a large handful of difficult regulatory obstacles for foreign investment funds wanting to transact business in China.

[Additionally, this makes the owner of venturecapitalchina.com very happy.]

Read the entire Private Equity HUB article here.

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Full post as published by The Startup Lawyer on August 15, 2008 (boomark / email).