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China revives QDLP outbound investment scheme in boost for foreign funds-sources

Published 08/02/2018, 02:38 pm
Updated 08/02/2018, 02:40 pm
© Reuters.  China revives QDLP outbound investment scheme in boost for foreign funds-sources
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SHANGHAI, Feb 8 (Reuters) - China has resumed an outbound investment scheme after a two-year hiatus, granting licenses to about a dozen global money managers, sources said, signaling that Beijing is less worried about capital outflows amid a surge in the Chinese currency.

Foreign fund managers with newly awarded quotas will be able to raise money in China for investment overseas under the Qualified Domestic Limited Partnership (QDLP) plan for the first time since late 2015.

The quota-based Shanghai scheme was unofficially suspended when China tightened capital controls amid turmoil in its stock and currency markets.

The industry had expected that each newly-qualified firm would be allowed to invest up to $50 million under QDLP, but the sources said the quotas were not distributed evenly.

Among the firms awarded fresh licenses this year, the investment arms of JPMorgan Chase & Co (NYSE:JPM) JPM.N , Standard Life Aberdeen SLA.L , Manulife Financial MFC.TO and Allianz ALVG.DE have over the past month set up outbound investment subsidiaries in Shanghai to conduct QDLP businesses, according to sources and registration information on government websites.

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