If a Taiwanese investor invests in and establishes an enterprise on the mainland using a company, enterprise or other economic organisation in a third place that it directly or indirectly owns or controls, it may apply to have such third place investor recognised as being the equivalent of a Taiwanese investor.
The Provisions expand the scope of RQFIIs to also include Hong Kong subsidiaries of commercial banks and insurance companies, as well as financial institutions incorporated and with a principal place of business in Hong Kong. The requirement that 80% of the proceeds be invested in fixed-return securities is also lifted.
Private equity funds established in the form of a company or partnership to engage in securities investments managed by a fund manager or general partnership are now governed by the Securities Investment Fund Law.
If the public interest is involved, foreign-related cases concerning labour protection, food safety, environmental protection, forex control, anti-monopoly and anti-dumping may be governed by PRC mandatory provisions.
The total funds (investment principal and returns) that a QFII may outwardly remit each month may not exceed 20% of its total domestic assets as at the end of the previous year.