China Asset & wealth management tax news flash

Jul 2016 , Issue 1


Entry ban lifted for wholly foreign-owned enterprises (WFOEs) and joint ventures (JVs) engaging in private securities investment fund management business in China

On 30 June 2016, the Asset Management Association of China (AMAC) released a 10th FAQ Regarding the Registration and Record-Filing of Private Funds (FAQ No.10), confirming that foreign financial institutions are permitted to engage in private securities investment fund management business in China via setting up WFOEs or JVs. The FAQ No. 10 also elaborates the qualification criteria for WFOEs and JVs participating in such business as well as the registration and record-filing requirements.

In this News Flash, we will highlight the background of FAQ No. 10, summarise the criteria for qualified WFOEs and JVs, and share our observations on some practical issues. Foreign financial institutions that consider entering the Chinese private securities market as a fund manager should assess the impact of this development and make commercial adjustment to fulfil the criteria where necessary.

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Florence Yip
Asia Pacific Tax Leader Financial Services, Asset & Wealth Management
Tel: +[852] 2289 1833
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Jane Xue
China Asset and Wealth Management Leader
Tel: +[86] (21) 2323 3277
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Oliver Kang
China Insurance Tax Leader
Tel: +[86] (10) 6533 3012
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Stella Fu
Partner
Tel: +[86] (21) 2323 2907
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Kevin Huang
Partner
Tel: +[86] (755) 8261 8239
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Qing Ni
Funds Audit Partner, PwC China Private Equity Group
Tel: +[86] (10) 6533 2599
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Scott Qian
Director
Tel: +[86] (10) 6533 3129
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Frank Shan
Partner
Tel: +[86] (21) 2323 3487
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Matthew Wong
Partner
Tel: +[86] (21) 2323 3052
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Kenny Lam
Partner
Tel: +[86] (21) 2323 2595
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Tracy Cao
Partner
Tel: +[86] (21) 2323 2727
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Jeremy Ngai
China South Tax Leader
Tel: +[852] 2289 5616
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David Kan
Partner
Tel: +[852] 2289 3502
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Puay Khoon Lee
Partner
Tel: +[852] 2289 3828
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