Research On Legal Issues Of Foreign Investors’ Access To QFLP

Limited partnership enterprise is the main organizational form of foreign private equity funds.Qualified Foreign Limited Partner(QFLP)has been piloted in many cities to regulate the establishment and operation of foreign private equity funds in the form of limited partnership.Establishment and Investment stages of QFLP private equity funds involve the supervision of foreign investment admission.Foreign investment admission at the establishment stage involves three entities: the qualification requirements for foreign-invested equity investment management companies,namely QFLP funds managers,the standard of qualified foreign limited partners,which are the qualified investors and foreign-invested equity investment enterprises,namely QFLP funds.Some theses discuss whether PEs shall undergo the approval procedure or the recordation procedure.In the investment stage of QFLP funds,when the PE is managed by a Foreign-funded Enterprises and the investors are domestic,whether the PE’s investment should be recognized as foreign investment,and how to apply the negative list,there are various perspectives.This thesis demonstrates the legal character of QFLP funds,analyzes its fundamental features compared with traditional foreign direct investment,and proposed that it be appropriate to guarantee the national treatment of foreign investment.Conduct empirical analysis and comparative research on domestic PE regulatory norms and QFLP pilot policies in many places,discuss the standards for foreign-funded general partners and qualified foreign limited partners,then put forward suggestions on the convergence of access standards with domestic PE.Based on the operation mode and nature of QFLP funds,illustrate the statutes of investment made within China by foreign-funded enterprises,and refer to the "reinvestment" norms of foreign-funded startup investment enterprises and foreign-funded investment companies.Make suggestions on improving statutes regulated foreign investment access in the investment stage.The first chapter demonstrates that QFLP funds’ foreign investment access exists in the establishment and investment stages.The regulation about Foreign investment admission can be improved in the following aspects.National treatment for general partners and foreign limited partners,establishment procedures of the QFLP funds and the supervision of reinvestment.The second chapter analyzes the causes of the current statutes,and demonstrates the legal nature of QFLP funds.QFLP funds are combination of foreign investment and international financial services.The QFLP pilot policy needs to be coordinated with foreign investment regulations.As for the diverse regulations in various areas,it is advisable to promote the formulation of unified qualified foreign limited partner rules.The third chapter is about the foreign investment admission in the establishment stage of QFLP funds.Based on the nature of the coexistence of foreign investment and international financial services,it is recommended to retain the necessary review procedures for supervision in fund industry,and set the same standard for foreign and domestic PEs when it comes to the qualification of GP and LP.The fourth chapter discusses the coordination of reinvestment regulations for foreign-funded enterprises and QFLP funds.Regulations about foreign-funded startup investment enterprises and foreign-funded investment companies Can be referred.FIE GP QFLP shall be recognized as foreign investor.When the negative list system is applied,the proportion of foreign investment shall be penetrated and verified,that is calculating the actual investment of foreign general partners and overseas limited partners.The overall investment amount of the QFLP fund is not recognized as foreign capital as a whole.