New Opportunity for Foreign Asset Managers to Tap RMB Investors’ Appetite for International Capital Markets?

Summary: The Shanghai government is reportedly taking an initiative, called “Qualified Domestic Limited Partner” (QDLP), to allow foreign asset managers to set up wholly owned subsidiaries in China to raise RMB funds through private placement for investment in international capital markets. Despite the uncertainty of the fate of this QDLP program in the absence of approval by central-level authorities, the general trend of allowing funds raised in China to be invested in international capital markets, perhaps under foreign asset managers’ sole management, is unlikely to change.