China QDLP Program Creates New Challenges For Asset Managers

China gave six hedge funds the right to raise funds in yuan for international investments earlier this year in the experimental Qualified Domestic Limited Partner (QDLP) program in Shanghai, a first step toward opening the country’s markets and internationalizing its currency. Now that the program has had a few months to get going, Kenny Lam, tax partner at PricewaterhouseCooper Shanghai, explains what this means for asset managers. “While the QDLP program provides a new window of opportunity for both overseas hedge funds and Chinese domestic investors, there are a number of issues that need to be managed by asset managers,”…