Chinese Regulator Vows to Crack Down on Private Equity Funds
- Regulator will work to root out “fake” private equity funds
- China’s PE, venture capital funds manage $2 trillion of assets
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China’s securities regulator said it plans to rein in the country’s private equity and venture capital funds, stop public offerings disguised as private placements and fight embezzlement of assets.
The China Securities Regulatory Commission will work to root out “fake” private equity funds that are actually sold to the general public instead of targeted investors, Chairman Yi Huiman said in a speech to a fund-industry association. The CSRC will also crack down on money managers that illicitly take public deposits, offer loans or embezzle fund assets.