Cathay Capital Co-creation (Fuzhou) Equity Investment Partnership Enterprise (Limited Partnership), Fuzhou City’s first Qualified Foreign Limited Partner (QFLP) has recently been established in Fuzhou Area of China (Fujian) Pilot Free Trade Zone with its first-phase investment of RMB 50 million, according to the Administration of Fuzhou Area of China (Fujian) Pilot Free Trade Zone. The establishment of the new QFLP Fund was made possible with the coordination of the Administration of Fuzhou Area of China (Fujian) Pilot Free Trade Zone and the Fuzhou Financial Supervisory Authority, as well as with the support of foreign exchange administration departments.

According to media reports, QFLPs are overseas institutional investors who, after obtaining qualification approvals and completing foreign exchange supervision procedures, exchange overseas capital for RMB funds and invest them in the domestic private equity (PE) and venture capital (VC) markets.

With the establishment of the first QFLP pilot fund, Fuzhou Area of China (Fujian) Pilot Free Trade Zone has secured a new conduit for the utilization of foreign capital and opened a new investment channel for foreign-invested enterprises. The QFLP pilot fund has also laid a solid foundation for promoting cross-border investment and financing, marking a major initiative of Fuzhou Area of China (Fujian) Pilot Free Trade Zone in facilitating cross-border investment and financing.