Recently, the Kunming Area of China (Yunnan) Pilot Free Trade Zone (Kunming Economic and Technological Development Zone, hereafter referred to as Kunming Area) has innovatively issued the "Implementation Rules for Qualified Foreign Limited Partnership Pilot Program (Trial)" and "Working Mechanism of the Leading Group for Qualified Foreign Limited Partnership Pilot Program", marking Yunnan’s first QFLP pilot program officially launched in the Kunming Area. 

QFLP refers to Qualified Foreign Limited Partner, including overseas natural persons, industrial capital, institutional funds, and other qualified foreign limited partners participating in the pilot fund. It serves as an important channel for foreign investors to participate in domestic investments and a new model of foreign investment by privately raising funds from domestic and overseas investors, and investing in the equity of unlisted domestic companies. Currently, more than 70 regions across the country have implemented the QFLP pilot program.

Aimed at further improving the utilization of foreign capital and promoting industrial upgrading, the QFLP pilot program is an innovative business that Yunnan Province carried out on a trial basis in the Kunming Area. It will enhance a new high-level opening-up of the financial industry in the Kunming Area, support the expansion of foreign investment utilization, and attract internationally renowned investment institutions to settle in Kunming.

According to the detailed rules, fund management companies applying for QFLP pilot funds are not restricted by their place of registration. They only need to complete registration at the Asset Management Association of China and have a cumulative management scale of more than 5 billion yuan to qualify as pilot fund management companies. After registering and establishing in the Kunming Area or the Mohan-Boten Economic Cooperation Zone, the pilot funds can be invested in projects across the country that comply with relevant national laws and regulations.

“This year, Kunming will fully leverage the role of the special team for foreign investment projects  and actively strive for breakthroughs in the QFLP pilot program to enhance the quality and increase the volume of foreign investment utilization”, said relevant person in charge from the Kunming Investment Promotion Bureau. As industrial funds serve as an important means to attract social capital, and optimize and upgrade the industrial structure, Kunming has established municipal-level industrial investment funds with a capital scale of 9.56 billion yuan, ensuring the implementation of several major projects at the municipal level, including Wingtech Technology and Shanshan New Energy.

Recently, Kunming Municipal Commerce Bureau, Kunming Municipal People's Government Financial Office, and Kunming Investment Promotion Bureau jointly organized the "2023 Kunming Qualified Foreign Limited Partnership (QFLP) Pilot Program Symposium and Government Industrial Investment Fund Training Session" to facilitate the promotion of high-quality industrial development by utilizing capital attraction.

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(Editors: Lexi, Christine)