Oasis Capital Invited to Sign Shanghai Lingang New Area QFLP Partnership Pilot

On the afternoon of June 8, at the 14th Lujiazui Forum, the Lingang Special Area Administrative Committee of China (Shanghai) Pilot Free Trade Zone held a centralized signing ceremony for QFLP fund projects. Shanghai Vice Mayor Xie Dong and Municipal Government Deputy Secretary-General Wang Ping attended the ceremony. At the signing ceremony, the Lingang Administrative Committee signed memoranda of cooperation with seven QFLP pilot management firms, including IDG Capital and Oasis Capital, showcasing Lingang's achievements in financial innovation and investment promotion, as well as highlighting the effectiveness of Shanghai's QFLP pilot program. Going forward, all parties will leverage their respective strengths to advance coordinated development, jointly promote the internationalization of emerging financial industries in the new special area, enhance the service level and global competitiveness of the financial sector, and further contribute to Shanghai's construction as a global asset management center.

Oasis Capital stated at the signing ceremony: "The QFLP policy brings greater openness and makes it more convenient for global capital to invest in China. Going forward, we will further increase our investments. In this process, we have also fully felt the government's support for global capital, and we hope to strengthen cooperation with the government and contribute more in terms of industrial guidance and active innovation." This signing will further unleash the special policy effects of the Lingang Special Area, improve the facilitation level of cross-border investment in Shanghai, better advance high-standard opening up, and make positive contributions to serving national strategies and high-quality economic development in Shanghai. QFLP refers to Qualified Foreign Limited Partner. After passing qualification approval and foreign exchange fund supervision procedures, overseas institutional investors convert foreign capital into RMB funds to invest in China's PE/VC market. Since 2010, Shanghai has piloted the QFLP program. On February 17 this year, the Shanghai branch of the State Administration of Foreign Exchange issued the Notice on Expanding the Scope of Certain High-Level Opening-Up Pilots for Cross-Border Trade and Investment in the Lingang Special Area, extending the QFLP pilot foreign exchange management policy from the Lingang Special Area to the entire jurisdiction of Shanghai, further supporting cross-border investment by equity funds.

Recently, Ge Ping, Deputy Director of the Shanghai Local Financial Regulatory Bureau, introduced at a press conference that 32 of the 38 foreign-owned private securities investment fund managers (WFOE PFM) registered with the Asset Management Association of China are based in Shanghai. Seventeen of the world's top 20 asset management institutions have established entities and commenced operations in Shanghai, with a series of national "first" and "first batch" foreign financial institutions in the asset management sector successively setting up in the city. In September 2022, the Shanghai Asset Management Association was inaugurated.

Ge Ping stated that next steps, under the guidance and support of national financial regulatory authorities in Shanghai, they will work with all market participants to leverage existing advantages and characteristics, accelerate the construction of a global asset management center, expand high-standard financial opening up, promote international cooperation among Shanghai-based financial markets, continuously innovate products, smooth asset management investment channels, and provide more diversified trading services and risk hedging tools for the asset management industry. They will also improve the diversified asset management institution system, support qualified foreign institutions in establishing wholly-owned or joint-venture securities, fund, and pension management institutions in Shanghai, as well as joint-venture wealth management companies, and continue to deepen QFLP and QDLP pilots.

Source: Jiemian

Oasis Capital is a new-generation venture capital firm in China, dedicated to discovering the most vital entrepreneurs of the next decade and growing alongside them to create long-term value. "Championing Vitality" is Oasis's vision and mission. This vitality is both the direction of structural transformation in the era and the force of resilience and evolution embodied by entrepreneurs.

Oasis Capital focuses on early and growth-stage investments, with individual ticket sizes ranging from $3 million to $30 million, concentrating on robotics, artificial intelligence, and technology services, to support China's technology-driven upgrade of new services.