China Matters
China Matters: RMB Private Equity Funds in Foreign-Invested Partnerships
March 10, 2010
By
Jia Yan
On March 3, 2010, Carlyle and Fosun were reported to have formed a partnership in Shanghai to undertake private equity investment. This was reported as the first business license granted to a foreign-invested partnership (FIP) with primary business in private equity investment, after the Administrative Measures for the Establishment of Partnership Enterprises by Foreign Entities or Individuals in China (the FIP Measures) took effect on March 1, 2010. Now clouds seem to have been cleared despite the absence of further rules (as required under Article 14 of the FIP Measures), the State Administration of Industry and Commerce (SAIC) seems to have taken the view that the relevant administration of industry and commerce authorities (AICs) at the provincial level have the authority to register private equity funds formed as FIPs.