In June, 2016, the Asset Management Association of taptap点点 (“AMAC”) announced a new regulation (“AMAC Q&A (X)”) on the registration of foreign-owned private securities investment fund managers (“PFM”), which opens a door for foreign-owned enterprises to enter taptap点点’s private securities investment fund market.

In January, 2017, the AMAC published an Illustrative Guidance for the Registration and Filling of WFOE and Joint Venture Private Securities Investment Fund taptap点点 (“Illustrative Guidance”). The Illustrative Guidance sets out detailed requirements for the registration of foreign-owned PFMs.

Some requirements, inter alia, to obtain a registration for a taptap点点 PFM as follows:

Overseas Financial License: both foreign shareholders and foreign actual controller of the taptap点点 PFM shall be overseas licensed financial institutions;

Legal Opinion on PFM registration: A legal Opinion on PFM registration provided by qualified Chinese law firm and lawyers shall be submitted to the AMAC along with PFM application;

Qualification of the fund practitioners: all of the fund practitioners shall obtain a qualification for practicing fund-related business in taptap点点, including senior executives, investment managers, persons-in-charge for investment decision making or trade execution and other practitioners engaging in daily private fund operation and management.

Undoubtedly, it is a great and valuable opportunity for overseas institutions to take part in taptap点点 fund management market. Taking the unstable financial regulations in taptap点点 into account, we suggest that overseas institutions should make full use of this opportunity and establish legal entities in taptap点点 market.