One prominent change of the "Regulation on the Administration of Foreign Enterprising Investment Enterprises" is its introduction of the trustee management system, which is common in the world. It allows the enterprising investment enterprises entrust its investment operation to a qualified management company of enterprising investment The management company is entrusted to manage the fund of the enterprising investment and to look for investment opportunities and to negotiate on investment terms. It can also engage itself in risk investment on behalf of the enterprising investment enterprise and provide relevant consultation in management.

Following are the qualifications of management companies entrusted to carry out risk investment:

The major business of the entrusted company shall be managing the investment of enterprising investment enterprises; Having three (or above) experienced professional staffs who have more than three years of experience in risk investment; Its registered capital or total volume of investment shall be no lower than RMB one million or equivalent other foreign currencies; Having complete internal control system.

Enterprising investment management companies can be organized in the form of corporate or partnership. One management company can be entrusted by more than one enterprising investment enterprises.

Risk investment management companies shall report to the joint management committee or chairman of boards of the entrusted part about major investments on a regular basis. It shall also report the mid-term or annual performance report and financial report; other issues s stipulated according to laws and regulations; relevant issues in the contract with enterprising investment enterprise and its articles of associations The establishment of foreign enterprising investment management companies shall meet the above-mentioned requirements and shall be approved by the local provincial foreign trade and economics The approving institution shall, within 45 days after the receipt of all the application materials, make its decision of approval of disapproval in written form. If the application is approved, an "Approving Certificate of Foreign Investment Enterprises" will be issued. Foreign enterprising investment management companies shall, within a month after the receipt of the certificate, proceed with its registration at the registration institution.