Although there has been some opening up in cross-border finance, the proportion of Hong Kong and Macao funds that can enter the mainland investment and loan market is still relatively low. In an interview with the media, Shen Minghao, Dean of Guangdong University of foreign studies, once described the current situation of capital circulation in and out of Guangdong Hong Kong and Macao. Shen Minghao said that the survey found that Hong Kong has actually reached the scale of 10 trillion yuan in terms of bank deposit balance, but only 100 billion yuan can be circulated to Guangdong now, so there is a problem of large capital and small circulation.
Li Jinlong believed that the opinions released a lot of signals. For example, in the current situation of anti globalization, further increase the openness of capital projects and financial system, and RMB will be more hopeful to go out, so as to accelerate the internationalization process and support economic transformation and industrial upgrading. As far as our business is concerned, since we have developed in Hong Kong and Shanghai at the same time, it may be more convenient for investors from both places to recognize products from other places, and it will also help us better implement asset diversification for investors. Li Jinlong said.
Private equity cross border investment
The dilemma is expected to be solved
He Jun, senior partner of Beijing Yingke (Guangzhou) law firm and professional lawyer of private fund, said in an interview that in fact, qflp has been piloted in China in recent years and has played a positive role in activating the domestic capital market. The opinions released this time will further encourage more institutional investors from Hong Kong and Macao to participate in investment in mainland private equity investment and venture capital funds in Dawan district through qflp, and more qdlps and qdie will actively carry out overseas investment, and more Hong Kong and Macao investors will have the opportunity to enjoy the dividends brought by the development and construction of the bay area. This is a great policy benefit for the capital market, equity investment and venture capital in Dawan district. He Jun said.
Yuan Hongwei, a partner of Songhe capital, believes that orderly promotion of qdlp and qdie pilot and support of mainland private equity investment fund overseas investment is a great advantage for domestic RMB fund with overseas investment projects. The original problem of qdlp is that even if the RMB fund has the qualification to invest in overseas projects, it doesnt mean that it can definitely invest the RMB overseas, because there is no way to exchange. In an interview with reporters, Yuan Hongwei said that such institutions need a more investment quota. As long as they think the project is suitable for investment, they can exchange freely under this quota. Now, for every project invested, they need to go through an approval process, which takes a lot of time. They also need to build a relevant structure, which is very restrictive for qualified institutions to invest in high-quality high-tech enterprises with red chip structure Industry. Yuan Hongwei expressed that he hoped that the opinions would give more detailed implementation rules in this regard, so that investment institutions could really invest in overseas high-quality projects.
This is conducive to the equity investment of enterprises in the bay area, especially foreign capital in accordance with the access management and the real compliance of domestic investment projects, which will bring more liquidity to the capital market in the bay area and enrich the equity investment environment in the bay area. He Jun pointed out.
In Yuan Hongweis view, this is actually an exploration of the foreign exchange management system. When the original RMB does not involve foreign exchange conversion, many non investment enterprises also have experience in equity investment. We also have LP from listed companies, central enterprises, etc., but to some extent, exchange restricts investment. The opinion allows foreign exchange to be invested directly in foreign currency without settlement. After the enterprise has foreign exchange, it can invest in the fund established in China. On the one hand, it has certain attraction for the enterprise with foreign exchange income, and on the other hand, it is also good for the fund raising us dollars in China. In the past, many of the objects we invested in, although the businesses are all in China, will build vie structure in order to go to the United States or Hong Kong for listing, so we can only invest in US dollars, but it is very difficult for RMB fund to raise US dollars. Yuan Hongwei said. Source: responsible editor of Securities Times: Yang Bin_ NF4368