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The tourist center of the Nanhu Fund Town. [Photo/cnjxol.com]

Jiaxing in East China's Zhejiang province, along with Huzhou and Wenzhou, recently received approval from the provincial government to pilot the Qualified Foreign Limited Partner program, according to the finance office of the Jiaxing municipal government.

QFLP is a pilot program developed by various local Chinese authorities. The QFLP program grants foreign investors access to China's domestic private equity market and offers more favorable treatment to foreign private equity fund managers and institutional investors.

Under the QFLP program, a wholly foreign-owned enterprise or a Sino-foreign joint venture established by a foreign private equity fund manager can raise funds in the form of a partnership and invest domestically.

As a hub of high-quality foreign investment in Zhejiang, Jiaxing is expected to optimize the capital market environment and promote industrial transformation and upgrading by piloting the QFLP.

The city plans to pilot the program in Jiashan county and take advantage of Nanhu Fund Town, the country's first private equity fund town, to encourage the involvement of overseas capital in the local capital market in a bid to encourage more companies to go public via equity investment, according to an official from the finance office.

He added that Jiaxing will also utilize its advanced overseas management experience and talent to strengthen its competitiveness and promote scientific and technological innovation.