Edince Kun
China's regulators have drafted a plan to let domestic insurance companies double their current commitment to private equity, potentially releasing $50 billion.
China is amending its securities investment fund law to include regulations on private equity funds, according to reports.
Management fees in Asia are generally higher than in other regions, but the fees tend to come with sweeteners, a survey from Squadron Capital noted.
China’s NDRC has ruled that foreign-sponsored RMB-denominated funds will not receive the same treatment as domestic funds.
Chinese regulators may allow private equity funds to join the Qualified Foreign Institutional Investor program to further open the nation's capital markets.
As China's institutional investors increase their capital commitments to private equity, terms and conditions may begin to mirror US-based funds.
Foreign private equity firms reportedly face uncertainty surrounding the country’s proposed tax regime, which could impact offshore funds.