What is the RMB fund model? Rmb investment is becoming more and more popular. Next, the editor introduces several models of RMB funds. At present, the establishment of RMB funds by foreign venture capital active in China can be roughly summarized into three modes, namely, wholly foreign-owned, Sino-foreign joint ventures and wholly foreign-owned.

1, wholly foreign-funded mode:

Overseas venture capital funds are audited by SAFE, and the Ministry of Commerce applies for and approves the establishment of RMB funds in China to directly invest in projects in China, such as IDG. At present, the application for setting up a RMB fund has been approved by the Ministry of Commerce, with a scale of about 500 million yuan.

From GP's point of view, this complete foreign investment mode will be the best mode to serve overseas LP. Both RMB and USD funds belong to the same LP group, and there is no conflict of interest in investing in projects and serving overseas LP.

However, due to the inflow of hot money into China in recent years, China government's own foreign exchange reserves are very high, and the government began to control the scale of foreign investment and actively encouraged local RMB to set up risk funds. Nbsp; kloc-the RMB fund model with 0/00% overseas investment may encounter difficulties in the application and approval process. In addition, the specific operation form after approval needs further discussion.

2. Sino-foreign joint venture mode:

That is, starting from the existing US dollar fund, looking for a suitable LP in China, * * * jointly set up a RMB fund. Many overseas funds such as Safran, Detong, Gobi and Zhiji have set up RMB funds in this mode. For foreign LPs, although they no longer have 100% of the newly established RMB funds, there will not be too many problems because the new domestic LPs only participate in the investment of RMB funds, which is relatively small compared with the larger US dollar funds as a whole.