Since the breakout of US Subprime Mortgage Crisis, global liquidity further tightens. Due to the impact of the loss of financial sector, investment funds which used to invest in the area of Europe, USA and so forth have to seek new investment bright spot. China, Russia and other countries’ increased domestic demand made it become the new bright spot of global investment.
However, China's law also needs to be standardized, thus China will further open up the control of foreign capital, and regulate the operation of foreign capital investment. The establishment of "Partnership Enterprise Law" filled the gaps in this area, and the establishment of foreign capital investment corporation also China begins to participate in the global investment and be a large capital resource of PE, VC.
How can LP, GP share investment results of PE, VC and preserve and increase the appreciation of their own funds? FOF will be the bridge which can not be ignored. For China, FOF is a new concept, and we look forward to further international convergence.
