A
type of investment fund which can be set up in
China refers to the
retail vehicle. The broad definition of a
retail fund comprises any type of
investment fund which is registered by
retail investors, who do not have the quality of
professional investors. An important aspect related to the
retail investment market in China is that this field has been increasing in the last years, as the local authorities enacted various regulations to sustain this sector.
Our team of lawyers in China can offer legal assistance on the legislation referring to the registration of a
retail fund.
Types of retail funds in China
The retail investment funds in China are regulated under the Securities Investment Funds Law.
Retail funds in China can be set up as
open-ended or
closed-ended, which refers to the amount of shares that can be issued through the
fund. Moreover, these two types also establish the ways in which the investors can obtain their
return on investment. In the case of
open-ended funds, the procedure can be performed at any time, as opposed to the case of a
closed-ended fund.
• equity funds;
• money market funds;
• debt funds;
• hybrid funds;
• qualified domestic institutional investor funds.
Our team of attorneys in China can provide in-depth details on each of the above mentioned
funds and can help investors choose an appropriate entity for their
investment plans.
Qualified domestic institutional investor (QDII) in China
China enforced a new programme in 2016, the qualified domestic institutional investor (QDII), which allows the local institutional investors to invest in overseas markets.
The programme addresses to:
• commercial banks;
• insurance companies;
• security firms;
• fund managers.
This programme allowed the retail investors to be a part of the investments projects carried out on the offshore markets.
Each of the above mentioned types of QDII is regulated by a different institution, which verifies the activities carried out through the fund.
