China funds insights

Initiated by our China Asset Management & Investment Funds team led by Melody Yang, partner at our Beijing office, this dedicated China funds insights page explores questions and issues commonly asked and faced by our international and Chinese clients and other market players in the fields of investment and trading in China. Through the publications of short 10-15 minute clips, this page explores various specific topics such as China’s cross-border QDLP & QFLP regimes, QFII application 101, QFII’s investment into Chinese onshore managers, QFII's disclosure and reporting obligations, and China’s ESG updates.

• China's ESG updates
  An introduction on the ESG sector in China, in areas of green finance, green bonds and loans, ESG disclosure framework and corporate governance, and taxonomy.

• China's cross-border QDLP & QFLP regimes
  An introduction on China’s cross-border QDLP and QFLP regimes, focusing on their respective policy background, possible structure(s), key elements, recent development and establishment process.

• QFII application 101
  An introduction on the most frequently asked questions about QFII applications, namely the difference between QFII and other cross border market access regimes, the best entity within the group to apply for the QFII licence, fungibility of the QFII licence, ownership of the QFII assets, ways to utilise the QFII licence, key elements covered in the QFII application forms, and other documentations required for QFII applications.

• QFII's investment into PRC onshore managers
  An introduction on the three routes for QFIIs to invest into PRC onshore managers, namely through investing into investment plans managed by “Securities and Futures Business Operators”, through investing into PFM funds, and through engaging with PRC investment advisors, together with an analysis and evaluation of the key differences and similarities between the three routes, as well as an introduction on the structure, key elements and documentations required for QFIIs to invest through the PFM fund route.

• QFII's disclosure and reporting obligations
  An introduction on the three types of reporting obligations, namely regular, extraordinary, and ad hoc reporting, and the two concepts regarding disclosure obligations, namely “Parties Acting in Concert” and “Connected Accounts”, with respect to securities and futures trading, together with insights on the key uncertainties in law and in practice, regulators’ policy intention and predicted future development in the relevant fields.

Note: QFII is a scheme that allows foreign institutional investors to enter into China's capital market directly; QDLPs are pilot programs developed by local authorities that allow foreign asset managers to raise RMB from wealthy and institutional investors in China for overseas investment; QFLPs are pilot programs developed by local authorities that grant foreign investors access to China's domestic private equity and private credit markets.