Chinese market provides several investment vehicles available for foreign investors. The legislation in this sense was modified in 2014, under the regulations of the Securities Investment Fund Law, providing new guidelines for private investment funds established in China. As a general rule, investment vehicles in China are addressed to retail investors and professional investors, and they can be set up as open-ended or closed-ended. Our team of lawyers in China can provide an in-depth presentation on the requirements for the registration of an investment fund.
Register a Chinese investment fund
Businessmen who want to set up a business in Chinacan register a private investment fund, which is defined by the fact that the financial assets are raised from non-public sources. As a general rule, the private investment funds are not required to receive an approval for their activity, but they should register at the Asset Management Association of China (AMAC); our team of attorneys in Chinacan provide more details in this sense. The main regulatory body for the investment vehicles available here is the China Securities Regulatory Commission (CSRC). The fund managers should file the following documents during the registration procedure:
•articles of association/partnership agreement;
•the list of shareholders;
•details about the fund’s senior management.
Here is a video about how you can open an investment fund in China, with complete legal support offered by our Chinese lawyers:
Retail funds in China
Chinese retail funds are regulated by the Securities Investment Funds Law, which states that this type of vehicle is characterized by funds which are publicly offered. Such funds are managed by fund management companies which require the approval of the CSRC. A retail investor can establish a retail fund as equity fund, debt fund or qualified domestic institutional investor fund.
Under the new regulations referring to the investment funds, investors can set up an open-ended or closed-ended vehicle, but it is important to know that the most popular form is the open-ended fund, which was first created in China in 2001. Under the latest AMAC regulations, foreign managers are allowed to carry out management activities for private investment funds. In order to do so, the foreigners are required to register at the AMAC, if the foreign manager is represented by a wholly foreign-owned enterprise.