Foreign PE firms get access to Shanghai

Foreign private equity firms will soon be able to set up in Shanghai following announcements by the city's financial administrator and new rules issued by the Pudong New District. But any approved firms will be watched closely at first.

The Shanghai Financial Services Office, which is responsible for co-ordinating the city's move toward becoming an international financial centre, said in a recent statement that it would allow foreign private equity and growth capital firms to establish wholly-owned subsidiaries or Sino-foreign joint ventures in the city. Approved firms will be allowed to carry out investment and asset management activities with investments made in convertible currency or renminbi.

Shortly after this, the Pudong New District published provisional rules covering such activities.