TEDA Becomes the New Highlight for Foreign Private Fund
In the context of global recession, China has maintained its growing economy, stable interest rates and high return in capital market. Investing in China has become an international consensus.
Tianjin Economic-Technological Development Area (“TEDA”) was founded in 1984 and is one of the first national level economic-technological development areas. Relying on its unique location radiating Beijing, Tianjin and Hebei，TEDA has attracted numerous well-known multinational enterprises to settle in Tianjin by its open and long-term-based working tradition.
Founded in 1995, Winners Law Firm (“Winners”) has provided services for a large number of enterprises in TEDA. In terms of foreign investment and foreign exchange supervision, Winners has made outstanding contributions to the investment promotion work of TEDA, while providing high-quality legal services to foreign enterprises around the world.
Since 2008, with the amendments to Partnership Enterprises Law, as well as Tianjin’s first trial of foreign private fund policies, a large number of foreign investors and foreign institutions have settled in TEDA. Tianjin’s opening-up policy in private fund area has also promoted domestic private equity institutions to register or invest in Tianjin. Driven by TEDA, as of now, there are over 400 private fund management institutions and nearly 3000 private funds in Tianjin, making a good gathering effect, especially in TEDA.
Recently, as a wholly-owned subsidiary of Hanwha Group, the top ten financial group in Korea, Hanwha Asset Management Ltd. (“Hanwha Investment”) has successfully registered at Asset Management Association of China (“AMAC”) as a private fund (securities) managing company on October 16th, 2020. Officially landed and started its business in TEDA, Hanwha Investment has become the first wholly foreign-owned private fund (securities) managing institution (“WFOE PFM”) in northern China.
Following Hanwha Investment, on November 9th, 2020, a Hong Kong-funded company Cephei Capital Management (Tianjin) Limited has also landed in TEDA and successfully registered as a private fund (securities) managing company at AMAC, being the second approved WFOE PFM in northern China. So far, Tianjin has become the second largest city that gathers WFOE PFM institutions next to Shanghai.
While attracting WFOE PFMs, in 2021, TEDA will also carry out the pilot programs of Qualified Domestic Limited Partners (“QDLP”), Qualified Foreign Limited Partners (“QFLP”), and Secondary Fund (“S Fund”), actively explore innovative measures, expand opening-up, encourage innovation and strengthen the support to provide an efficient registration and foreign exchange services for overseas investors.
Tianjin Binhai Fund Town (“Fund Town”) was formally launched in TEDA on 16 May 2021. The Fund Town will introduce self-regulatory institutions such as industry associations, intermediary agencies such as banks, law firms, and accounting firms, as well as local government guiding funds. In addition, TEDA will also provide services including policy consultation, commercial registration, tax registration, bank account opening, project recommendation, policy implementation and other one-stop, international, market-oriented, and convenient full-life cycle services.
As a local commercial law firm in Tianjin, Winners has participated in a large number of private equity projects, including the establishment of SAIF Growth Fund, the establishment of Deutsche Bank Fund, the private equity investment in chip industry on behalf of Tianjin Huabei Group Co., Ltd., the establishment of Binhai New Area Industry Guidance Fund, the establishment of Bohai Industry Fund, and the establishment of ZTE Capital Fund Management Company.
Winners has also participated in numerous fund investments and M&As, including the acquisition of a warehousing logistics company by Blackstone Fund, the investment in a chip company by Beijing E-town International Investment and Development Co., Ltd., and the investment in a NEEQ-listed company by Tianjin Venture Capital Management Co., Ltd. Our legal services have been widely praised and recognized by our clients.
Taking the third decade of the 21st century as a new beginning, Winners will accompany the new development of TEDA’s fund service, and will keep providing high-quality, professional and efficient legal services for investors from all over the world.
Click here to learn more about our Tianjin, China member Winners Law Firm.