Approval of the Draft Foreign-Invested Partnership ("FIP") Regulations

On August 19, 2009, China’s State Council approved, subject to further clarifying amendments, the Administrative Measures for the Establishment of Partnership Enterprises in China by Foreign Enterprises or Individuals (Draft) (the “Draft FIP Regulations”). The Drafted FIP Regulations have been returned to the Ministry of Commerce for further refinement.

Since the PRC Partnership Enterprises Law taking effect in June 2009 only provides for partnership among PRC legal persons, local governments such as Tianjin, Shanghai and Beijing adopted their own local rules and structures to promote formation of RMB-denominated funds where foreign fund managers might participate. The Draft FIP Regulations indicate a move to a national framework for foreign-invested partnerships by the PRC.