Shenzhen City, Several Provisions on Promoting the Development of the Equity Investment Fund Sector
深圳关于促进股权投资基金业发展的若干规定
September 04, 2010 | BY
clpstaff &clp articles &Shenzhen encourages private equity investment.
Issued: July 9 2010
Interpreting authority: Financial Industry Development and Service Office of Shenzhen
Applicability: The term “equity investment funds” refers to the private offer of non-securities-type investment funds (including industry investment funds and venture investment funds) to specific targets for equity investment in non-listed enterprises and value-added services. Equity investment funds may be in the form of a company or partnership.
“Private securities investment fund management enterprises” refers to investment management organisations that rely on trust companies to issue wealth management products, file a record with the regulator, keep funds in custody with a third party bank, and mainly invest in securities markets.
The Provisions apply to Chinese-invested, foreign-invested, and Sino-foreign equity joint equity investment funds, equity investment fund management enterprises as well as private securities investment fund management enterprises that fulfil the following criteria:
(i) Equity investment funds shall have registered capital (amount of capital contribution) of at least Rmb100 million, the capital shall be contributed in monetary form, and the first amount paid shall be at least Rmb50 million. Shareholders or partners shall make capital contribution in their own names. The amount of capital contribution of individual natural person shareholders (partners) shall be at least Rmb5 million. Where the fund is established in the form of a limited company or partnership enterprise, the number of shareholders (partners) shall be no more than 50. Where the fund is established in the form of a non-listed company limited by shares, the number of shareholders shall be no more than 200.
(ii) Equity investment fund management enterprises that are established in the form of companies listed by shares shall have registered capital of at least Rmb10 million. Where such companies are established in the form of limited liability companies, they shall have paid-up capital of at least Rmb5 million.
(iii) Private securities investment fund management enterprises shall have a registered capital of at least Rmb10 million and assets under management of at least Rmb100 million (Part One).
Main contents: Equity investment funds that are newly established in the form of companies shall be granted a lump sum reward for setting up in Shenzhen. Where the registered capital reaches Rmb3 billion, a reward of Rmb15 million will be granted. Equity investment funds that are newly established in the form of partnerships shall be granted a lump sum reward for establishing in Shenzhen. Where the registered capital reaches Rmb5 billion, a reward of Rmb15 million will be granted (Part Four).
clp reference:3700/10.07.09promulgated:2010-07-09This premium content is reserved for
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