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Overview of private equity in Xiamen FTZ

LMS
ftz.xm.gov.cn|Updated: March 27, 2023

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Propelled by the pilot financial reforms of free trade zones, the Xiamen Area of China (Fujian) Pilot Free Trade Zone – located in East China's Fujian province – has acted. It has taken the lead in piloting the establishment of private equity investment funds, qualified foreign limited partner funds and private securities investment funds.

I. Investment advantages

a. Active measures to promote the launch of various funds

• Supporting the launch of pilot QFLP private equity funds;

• Setting up successive FTZ industry guidance funds, with a cumulative capital of 3 billion yuan ($438.6 million).

b. Xiamen's first municipal fund town - Goodstone Fund Town

· Received over 600 investment institutions from all over the country;

· Over 100 private equity funds with a total assets under management of nearly 20 billion yuan;

· Formed the Xiamen Fund Living Room and a platform for industry and finance integration.

c. Balanced industry layout featuring complementary development

· Promoting Xiamen's favorable policies for private equity funds through multiple channels and undertaking integrated use of guidance funds at the municipal, district and Xiamen Area levels;

· Supporting Xiamen Free Trade Zone Investment & Development Co Ltd and Xiamen Goodstone Fund Town and others to regularly hold fund investment promotions in first-tier cities.

II. Industry policies

• Notice of Xiamen Area Adminis­tration and Huli District Govern­ment on Issuing the Measures for the Development of Equity Investment Enterprises in the Fund Town

• Notice of Xiamen Area Adminis­tration and Huli District Govern­ment on Issuing the Measures for Promoting the Development of Private Equity Fund of Funds in Xiamen Area

• Administrative Measures of Xiamen Area Administration for Industry Guidance Funds