According to a press release on official website of the Guangzhou Municipal People's Government, the Guangzhou Municipal Finance Bureau held a news conference on 26 October 2016 announcing that from the end of September 2016, Guangzhou resumed providing normal market access to all forms of equity investment enterprises.

In early 2016, following a surge in formations and some high profile failures, the State Administration for Industry and Commerce (SAIC) imposed a nationwide ban on the establishment of new businesses with investment-sounding names or functions. Guangzhou is the first municipality in China to resume processing registrations to establish new equity investment businesses.

Any enterprise that applies to use "equity investment funds" in its enterprise name and to engage in permitted equity investment business can operate its business in Guangzhou after it has obtained its business licence and completed the record-filing process.

According to the press release, the city is keen to create a cluster of financial enterprises due in part to its perceived need to consolidate the local equity investment industry. Guangzhou’s concentration of financial institutions and relative ease in raising funds and finding investment targets makes it well suited to support the development of equity investment firms.

Following recent trends, the policy will rely on industry self-regulation by encouraging new players to join industry associations, as well as increased government supervision and penalties for illegal activities.

Guangzhou is also preparing a series of policies to encourage equity investment companies that were registered in other cities to carry out their investment business in Guangzhou.

To raise its profile and attract talent in the financial services industry, the city will host the 19th China Venture Capital & Private Equity Forum in the first half of 2017 and the Fortune Global Forum during the second half of 2017.

For more information on business registration in China, see Practice note, Establishing a China business

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