Newsletter
SOURCES OF VENTURE CAPI-TAL FUNDS INCREASED
According to a letter issued on 17 July 2001 by the Securities and Futures Commission (SFC), a securities finance enterprise may invest in ven-ture capital enterprises up to a limit of 5% of its net asset value, but the total of such investments must not exceed 40% of its total paid-up capital. Also, any shareholding of a securities finance enterprise in a venture capital enterprise must not exceed 10% of the invested enterprise's total is-sued shares, and the investment must be made by way of subscription to shares (including the subscription to shares upon incorporation and subsequent capital increase.)
The SFC's letter also requires that securities fi-nance enterprises must include a detailed listing of all their investments in venture capital enter-prises in their monthly accounting reports to the SFC.