The Management of Foreign Private Equity Funds Involves Foreign Investment and Foreign Exchange in the China (Shanghai) Pilot Free Trade Zone

China (Shanghai) Pilot Free Trade Zone’s management model of post-establishment national treatment to foreign investors is providing replicable and propagable experiences for the comprehensive deepening reform of China. Foreign private equity funds involve foreign investment and foreign exchange management and other systems which could be a representative sample of reform. However, even after the removal of previous unnecessary regulations, the reform of the post-establishment national treatment access is not absolute equality and fully liberalized for developing a concurrent regulation and ex-post regulation framework. Specifically, there is a need to simplify procedures in the stage of establishment and use the same barriers to entry with domestic capital, adopt the “negative list” management model in the part of investment; gradually promote the liberalization of foreign exchange, and monitor whether the flow of funds is real compliance, and also, make a national security review of fund acquisitions.