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

Jane Xue

China Asset and Wealth Management Leader

Tel: +[86] (21) 2323 3277

Oliver Kang

China Insurance Tax Leader

Tel: +[86] (10) 6533 3012

Stella Fu


Tel: +[86] (21) 2323 2907

Kevin Huang


Tel: +[86] (755) 8261 8239

Qing Ni

Funds Audit Partner, PwC China Private Equity Group

Tel: +[86] (10) 6533 2599

Scott Qian


Tel: +[86] (10) 6533 3129

Frank Shan


Tel: +[86] (21) 2323 3487

Matthew Wong


Tel: +[86] (21) 2323 3052

Kenny Lam


Tel: +[86] (21) 2323 2595

Tracy Cao


Tel: +[86] (21) 2323 2727

Jeremy Ngai

China South Tax Leader

Tel: +[852] 2289 5616

David Kan


Tel: +[852] 2289 3502

Puay Khoon Lee


Tel: +[852] 2289 3828

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