Structures for International Private Equity Investment in the PRC

Abstract

Over the last several years, a number of emerging trends have increased the attractiveness of utilizing onshore RMB-denominated investment vehicles to international private equity investors operating in China. While the regulatory framework remains opaque and less than fully formed, the Administrative Measures on the Establishment of Partnership Enterprises by Foreign Enterprises and Individuals, which became effective in March 2010, has clearly changed the landscape for the formation of onshore private equity investment structures and RMB-denominated investment funds and, moreover, indicates a growing maturation and clarification of regulatory support in this important area of the Chinese economy.