China introduces measures to support overseas investment in domestic sci-tech firms

An employee oversees the production line of a motor manufacturing company in Yueqing, Zhejiang province. CAI KUANYUAN/FOR CHINA DAILY

BEIJING - Chinese authorities released a document Friday introducing new measures to encourage overseas institutions to invest in China's domestic sci-tech enterprises.

The document, jointly unveiled by the Ministry of Commerce and nine other government departments, includes 16 measures that aim to optimize management services, enhance financing support, strengthen exchanges and cooperation, and improve exit mechanisms.

China will work to efficiently approve the qualification applications for the dollar-denominated qualified foreign institutional investor scheme (QFII) and its yuan-denominated sibling, RQFII, in accordance with the law, it said.

Overseas institutions will also be supported to invest in domestic sci-tech enterprises through the Qualified Foreign Limited Partner (QFLP) scheme.

Domestic venture capital funds established by overseas institutions will enjoy equal treatment with those established by domestic investors, according to the document.

Eligible overseas institutions will be encouraged to issue yuan-denominated bonds in China and invest in the sci-tech field, and the pilot projects that facilitate cross-border financing will be expanded nationwide.

Domestic banks will be encouraged to enhance cooperation with overseas institutions, it said.