CSRC New Regulations on Private Investment Funds

10/06/2014

On August 21, 2014, China Securities Regulatory Commission (“CSRC”), the Chinese securities regulator, promulgated the Interim Regulations on the Supervision and Administration of Private Investment Funds (the “CSRC Regulations”). These new regulations became effective on the same date.

Wide Definition of Private Investment Funds. The CSRC Regulations adopt a very broad definition of private investment funds, covering all types of funds raising money by private placement within China. Assets under management of such funds include stocks, equity interest, bonds, futures, options, mutual fund units, or any other investment portfolios as stipulated by the relevant investment agreements. Such funds can also be structured in different corporate forms, such as companies, partnerships, subsidiaries of securities houses, asset management companies and futures companies, etc. This definition looks general enough to cover both private equity funds and hedge funds businesses. A separate chapter in the CSRC Regulations further provides for certain differentiated treatments (subject to CSRC’s discretion) to venture capitalists.

To read the full publication, please click on the PDF linked below.

CSRC-New-Regulations-Private-Investment-Funds.pdf

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