Opt-out agreements which enable foreign-invested renminbi (Rmb) funds to quickly revert to a purely-domestic RMB entity are set to become commonplace.
Private equity lawyers in Hong Kong said the addition of opt-outs in RMB fund deal terms, to enable fund managers to exclude the foreign element of a fund, would become standard practice for the region’s more forward-thinking funds.
Purely-domestic RMB funds have long been considered a more practical method of investment. But the October 2011 issuance...