Foreign PE Firms Left in Limbo

(Beijing) – Overseas private equity companies may have been disappointed when the top economic regulator said they cannot circumvent restrictions on foreign investments by setting up a local fund management firm.

The National Development and Reform Commission (NDRC) released the notice in late April in response to the Shanghai government's request for clarification of the status of a yuan-denominated private equity fund launched by the Chinese subsidiary of a U.S. firm, Blackstone Group.