Pudong to Allow Foreign Investors to Set-up Equity Investment Management Company

SHANGHAI, June. 19 – Shanghai’s Pudong local government is now allowing foreign investors to set-up an equity investments management company until June 30, 2010.

The new regulation is limited to the Pudong area and can be applied via a cooperative joint venture, equity joint venture or a wholly foreign-owned enterprise given the following conditions:

(a) At least one of the foreign investors or its associate company has experience in equity investment or equity investment management business;

(b) At least two senior management personnel, who have relevant experience for more than 2 years and also have relevant work experience as a senior manager;

(d) Such company can engage in, as being entrusted by equity investment companies, managing investments and related consultancy services;

Moreover, an equity investment management company can avail of the following benefits until December 31, 2010:

(a) If the company’s registered capital reaches RMB500 million, the company can get RMB5 million as award;

(b) If the registered capital reaches RMB1.5 billion, the company can get RMB10 million as award;

(d) The chairman, deputy chairman, general manager and deputy general manager can get 40 percent salary allowance annually. Highly-qualified investment management managers or project managers can get 20 percent salary allowance annually;

(e) If the registered capital reaches RMB500 million or the equity managed by this company is over RMB 1 billion, Pudong government will give such company’s chairman, deputy-chairman, general manager and deputy-general manager the housing allowance at the amount of RMB200,000;

(f) If the office is located at Lujiazui area or Zhangjiang area, the company can get rent allowance at RMB500 per square meter per year. If the company buys office at these two areas, 1.5 percent of the purchase price will be given to the company as buying allowance.

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