China’s Industrial Investment Funds — New Partners in the Marketplace?
China Issues: Monthly commentary on cross-border investment with China
In late July 2008, the National Development and Reform Commission (NDRC), China’s central economic planning agency, announced that it is forming a working group to draft new regulatory guidelines for industrial investment funds (IIFs).
Since the launch of the first IIF in Tianjin in December 2006, the central government has given the go-ahead to 10 funds on a case-by-case basis. Clearly, IIFs will be a long-term phenomenon in China, as they have the support of various levels of Chinese government and can draw on a pool of willing investors.
Download Clarence Kwan's July-August Monthly Commentary to see ways that foreign investors might benefit from IIFs in the future.