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Navigating China's Investment Landscape: Insights on QDLPQFLP, QFII, and ESG

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About Us

Our team, led by Melody Yang, a partner in our Beijing office and the head of China Asset Management Investment Funds practice, has developed this dedicated insights page for navigating questions and challenges faced by both international and Chinese clients and stakeholders operating within investment and trading contexts in China. This resource is designed to provide clear, concise answers on topics such as China's QDLPQFLP regimes, QFII application process, investing through Chinese onshore managers, disclosure and reporting obligations, and emerging trs in environmental, social, and governance ESG.

China's ESG Insights

This section offers an overview of the evolving ESG landscape in China. We delve into areas such as green finance initiatives, the structure and dynamics of green bonds and loans markets, the development of ESG disclosure frameworks and corporate governance standards, and the establishment of taxonomy to categorize sustnable investments.

Cross-Border QDLP QFLP Regimes

We provide an in-depth exploration of China's cross-border QDLPQFLP frameworks. This covers their respective policy foundations, potential structures, key aspects, recent advancements, and steps involved in establishing these programs.

QFII Application 101

This segment addresses frequently asked questions about QFII applications including the distinction between QFII compared to other cross-border market access mechanisms; selecting the best entity for an application; fungibility of the QFII license; asset ownership considerations; leveraging strategies associated with a QFII license; components of QFII application forms and required documentation.

Investment Through Chinese Onshore Managers

We analyze three pathways for QFIIs to invest in Chinese onshore managers: via investment plans managed by Securities Futures Business Operators, through participation in Private Fund Management PFM funds, or engaging PRC-based investment advisors. We compare the pros and cons of each route, outline their structures, key elements, and necessary documentation.

QFII Disclosure and Reporting Obligations

This part discusses three types of reporting: regular updates, extraordinary events, and ad hoc notifications; also explning concepts such as acting in concert and connected accounts, particularly relevant for securities trading activities. We discuss uncertnties surrounding these obligations, regulators' intentions, and potential future developments.

that the information provided is inted for informational purposes only and does not constitute legal advice. Professional counsel should be sought before taking any action based on this document's content.

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