State Council, General Plan for the China (Hubei) Pilot Free Trade Zone
国务院中国 (湖北) 自由贸易试验区总体方案
January 02, 2017 | BY
Susan MokHubei FTZ encourages equity investment.
Promulgated: March 15 2017
Main contents: Domestic futures exchanges are supported to engage in business such as futures bonded trading and financing secured by the pledge of warehouse receipts in the special customs surveillance zones of the free trade zone (Item 5, Section Three).
Cross-border bi-directional renminbi fund pool business by multinational enterprise groups will be launched. The offshore parents of zone enterprises are permitted to offer renminbi bonds in China in accordance with relevant provisions. The extension of offshore renminbi loans by banks in the zone is supported. The participation in mutual recognition of mainland Chinese and Hong Kong fund products by fund products in the zone that satisfy mutual recognition conditions is supported. Foreign enterprises will gradually be permitted to participate in commodity futures trading (Item 8, Section Three).
The establishment of financial institutions in the zone by foreign investors is supported. The establishment in the zone of non-banking financial institutions such as financial leasing, automotive financing and consumer financing companies, and finance companies of enterprise groups by qualified promoters is supported. The engagement in credit asset securitization business in accordance with relevant provisions by banking financial institutions in the zone is supported. Qualified financial institutions in the zone are included in the scope of institutions that have priority in offering negotiable certificates of deposit. Financial institutions are encouraged to actively engage in movable asset financing business. Development of the commercial factoring business is supported. The registration and establishment of branches or dedicated subsidiaries in the zone by securities business firms is supported. Use of the zone platform by securities business firms to “go global”, secure qualified domestic institutional investor (QDII) or renminbi qualified domestic institutional investor (RQDII) qualifications and engage in offshore securities investment business is supported. The securing by their offshore subsidiaries of qualified foreign institutional investor (QFII) or renminbi qualified foreign institutional investor (RQFII) qualifications is supported. The engagement by foreign equity investment funds in cross-border investment related business through qualified foreign limited partnerships (QFLP) is supported. The establishment in the zone of insurance institutions specializing in health insurance, science and technology insurance and inland water transport insurance is supported.
Qualified lease financing business in the zone is permitted to charge rent in foreign currencies. The prepayment procedures for large lease financing projects, such as for vessels and aircraft will be simplified. The engagement in cross-border lease financing services is supported. The establishment of specialized subsidiaries by qualified financial leasing companies and lease financing companies is supported. Offshore financing by the leasing business is supported, and leasing companies of various types are encouraged to expand the scope of cross-border use of renminbi funds. Lease financing firms in the zone are permitted to engage in cross-border bi-directional renminbi fund pool business in a lawful and compliant manner (Item 9, Section Three).
The equity, technology and other such capital or element trading markets in the zone will be improved, and foreign investors will be permitted to participate in investment therein. Foreign-invested equity investment management institutions and foreign-invested venture capital management institutions are permitted to promote in the zone funds that manage renminbi equity investments and venture capital investments. Foreign angel investment, venture capital and other such venture investment institutions are encouraged to engage in business in the zone. The development of bi-directional equity investment funds using domestic funds to invest abroad and using overseas funds to invest in China is encouraged, and engagement in qualified foreign limited partnership (QFLP) and renminbi qualified foreign limited partnership (RQFLP) business will be tried on a pilot basis. The establishment in the zone of intermediary service firms such as factoring companies for import and export of equipment sets is encouraged, and those that are qualified may explore establishing and compliantly developing financing security companies of a scientific and technology nature. The integrated development of finance and the internet is promoted. Overseas listing, offshore M&A and acquisition of special purpose vehicles through foreign-funded financial institutions by enterprises of a scientific and technology nature is supported. Innovative development in a lawful and compliant manner by the Wuhan Equity Exchange is supported, the establishment of an innovative and entrepreneurial enterprise board for overseas returnees by the Wuhan Equity Exchange is supported and the establishment of a cooperation and compatibility mechanism between the Wuhan Equity Exchange and National Equities Exchange and Quotations will be promoted (Item 10, Section Three).
Qualified Sino-foreign equity joint travel agencies registered in the zone will be permitted to engage in outbound travel business, with the exception of travel to Taiwan (Item 18, Section Three).
Related legislation: General Plan for the China (Liaoning) Pilot Free Trade Zone, General Plan for the China (Zhejiang) Pilot Free Trade Zone, General Plan for the China (Henan) Pilot Free Trade Zone, General Plan for the China (Chongqing) Pilot Free Trade Zone, General Plan for the China (Sichuan) Pilot Free Trade Zone and General Plan for the China (Shaanxi) Pilot Free Trade Zone
clp reference:2100/17.03.15(4) promulgated:2017-03-15This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now