In order to further implement the spirit of the Overall Plan for the Construction of Hainan Free Trade Port and accelerate the agglomeration of foreign-funded enterprises in Hainan Province. On October 26, multiple departments of Hainan Province jointly issued the Interim Measures of Hainan Province on Carrying out Domestic Equity Investment by Qualified Foreign Limited Partners ("QFLP"), clarifying the establishment procedures and business scope of foreign-invested equity investment enterprises, and Risk prevention and control and other aspects proposed specific measures to support the settlement of foreign-invested equity investment enterprises in Hainan. The policy has five highlights:
First, "free of joint review", registration is simple and efficient. There is no joint review mechanism, and the enterprise application process is relatively short, requiring less materials to be submitted.
The second is the "seven no's", implementing the negative list management of foreign investment. The business scope of the qualified overseas limited partner fund adopts the negative list management mode, which defines the "seven musts", and businesses not included in the list can be carried out. At the same time, it has reserved space for qualified overseas limited partner funds to invest in stocks in the secondary market and some investment targets for corporate bond trading by adopting an exceptional way.
The third is "zero threshold", and the access requirements are the lowest in the country. There is no minimum entry threshold requirement for the registration of qualified overseas limited partnerships.
Fourth, "no difference", domestic and foreign capital wait for it. The requirements for domestic and foreign qualified overseas limited partners to manage enterprises are consistent, and the business models of "domestic capital management of foreign capital" and "foreign capital management of domestic capital" are clearly allowed, with high flexibility.
Fifth, "more preferential policies", and more supporting policies. The preferential policies have been clarified in terms of personal income tax, supporting preferential measures and park landing incentives. At the same time, the Provincial Financial Supervision Bureau will actively promote the inclusion of qualified overseas limited partner businesses in the encouraged industries directory and the encouraged foreign investment industries directory of Hainan Free Trade Port, and qualified overseas limited partner enterprises will enjoy more tax preferences.
Qualified Foreign Limited Partners (QFLP) means that foreign institutional investors convert foreign capital into RMB funds to invest in the domestic private equity investment market after passing the qualification approval and the supervision procedures for their foreign exchange funds. (Mao Xin, CCTV reporter, Zhang Weike)