Private equity real estate funds formed in China under Chinese law and denominated in the domestic currency, the renminbi (RMB), have captured the attention of international real estate investors and fund managers desiring to build investment platforms in China. These RMB funds are already a prominent feature of China’s developing domestic private equity industry. Recently the prospect of foreign involvement in RMB funds, either in the form of fund management or direct investment into the fund, has become increasingly possible, spurred on by changing legislative policies and programs. Many foreign investors and fund managers desiring to compete in China’s market view RMB funds as the “next opportunity.” The laws and market practices governing RMB funds are still rapidly evolving. Investors and managers targeting this segment of the industry will face challenges, but market players with flexibility, creativity and patience also may find valuable opportunities.