PE HUB is reporting that Shanghai has decided to let foreign investors register legally as local equities investment firms. That includes private equity and venture capital funds. The move is designed to entice overseas investment into China's financial hub.

The move allows foreign investors with a focus on investment in China to set up a Shanghai-registered entity - provided that can start out with at least 100 million yuan (about US $14.5 million at today's exchange rate). The new Shanghai entity gets legal status of a local investment company, along with special tax treatment.


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