The Interim Measures on Promoting Regulated Development of Equity Investment Market of Guangzhou (the Interim Measures) (amended in 2015) adopted at the executive meeting of Guangzhou municipal government on January 19 will be officially promulgated and implemented soon. The amended interim measures will lay a foundation for the implementation of “Nansha 15 Measures”.

 

The Interim Measures was amended on two aspects: first, the requirement on the opinions of the Office of Financial Works before the registration with the administration for industry and commerce will be cancelled. This will simplify the procedures of establishing equity investment enterprises in Guangzhou.

 

Second, conditions on establishment of equity investment enterprises are deleted. To set up an equity investment enterprise in Guangzhou, there are no requirements on minimum registered capital (paid-in capital), minimum amount of contribution of the natural person shareholders (partners), or restrictions on the middle-level and senior management personnel. The equity investment enterprises should make registration with the Asset Management Association of China after incorporation and are subject to the self-regulation of the industry.

 

Meanwhile, the Interim Measures will lay a foundation for the implementation of the Opinions on Supporting Nansha New Town of Guangzhou to Deepen Financial Cooperation Among Guangdong, Hong Kong, Macao and Taiwan and Explore Innovative Ways for Financial Reform (also known as Nansha 15 Measures) promulgated by 10 ministries and commissions such as the People’s Bank of China.

 

Up to now a total of 65 equity investment enterprises have registered at the Office of Financial Works of Guangzhou. And the funds under management of the equity investment enterprises have been increased from about RMB 20 billion at the end of 2012 to today’s more than RMB 120 billion.

 

Source: Guangzhou Daily, January 20, 2015