Night view of Zhoushan. [Photo/WeChat account: china-zjftz]

The first Qualified Foreign Limited Partner – XVC private equity investment fund – in Zhoushan, East China's Zhejiang province started operating in Putuo district, local media reported on Dec 16.

QFLP is a pilot program developed by various local Chinese authorities. The QFLP program grants foreign investors access to China's domestic private equity market and provides more favorable treatment to foreign private equity fund managers and institutional investors.

Under the QFLP program, a wholly foreign-owned enterprise or a Sino-foreign joint venture established by a foreign private equity fund manager will raise a fund in the form of a partnership and invest domestically.

The fund's limited partner XVCFund III LP is an overseas dollar fund. With a total scale of $100 million, the capital will be used to invest in innovation-based companies.