China’s CSRC seeks industry opinion on PE frameworks
22 February 2013
By Hui Ching-hoo
The China Securities Regulatory Commission (CSRC) announced on Wednesday (February 20) that it has launched interim measures to seek industry opinion on the issue of regularising the country’s private equity industry operations.
A CSRC official said that the amended Securities Investment Funds Law will now cover PE investment. The regulator has drafted the interim measures to regularise PE investment activities, protect PE investor interests and promote the healthy development of the PE industry.
Private equity, venture capital, and sunshine private securities funds are all subject to the measures, which encompass 38 directives spanning registration, investor requirements, product marketing, and management for PE funds. They also aim at tackling insider trading, embezzlement, and front running in the industry.
The regulations define the investment scope for PEs, allowing the funds to invest in a variety of asset classes such as equities, bonds, and derivatives.
The regulator also requires PE managers with contributed capital of over 10 million RMB (US$1.58 million) and accumulated investment of more than 100 million RMB to be registered.
In addition, an eligible individual PE investor should have total assets of at least 2 million RMB, while institutional investors need at least 1 million RMB.
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