(Yicai Global) June 10 -- China will try opening-up of foreign exchange management in the Lingang Special Area of Shanghai’s free trade zone, the Greater Bay Area and some parts of Hainan province’s FTZ.

The announcement was made by Pan Gongsheng, vice governor of the People's Bank of China and director of the State Administration of Foreign Exchange, in a speech at the 13th Lujiazui Forum 2021, which started today. 

China will test the Qualified Foreign Limited Partner system in the Lingang Special Area in a bid to help Shanghai become a key global wealth management and asset management market, Pan said. 

More eligible institutions will also be approved to expand the pilot Qualified Domestic Limited Partner program, and China will support them in investing in equity and bonds outside the Chinese mainland, Pan added. 

The QFLP scheme allows foreign institutional investors to convert overseas capital into Chinese yuan-denominated funds that can be used to invest in the domestic private equity and venture capital markets. 

The QDLP program allows domestic fund managers to raise funds from qualified domestic institutional investors and set up trial funds for investment in overseas primary and secondary capital markets. 

The government will also make it easier for Chinese people to move overseas assets into onshore and offshore markets through existing mechanisms, such as the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect and Bond Connect, Pan added. 

Editors: Tang Shihua, Tom Litting