CX Daily: Regulators Tighten Grip on China’s $2.9 Trillion Private Fund Industry

Official new measures regulating China’s private funds, released on Feb. 24 and set to take effect in May, lowered some of the upfront capital requirements for establishing a fund set in a previous version.

Funds /

Regulators tighten grip on China’s $2.9 trillion private fund industry

While private fund investment in China has ballooned into a 20 trillion yuan ($2.9 trillion) beast, risks have grown, prompting authorities to curb the industry’s rampant growth.

The Asset Management Association of China (AMAC), a fund industry group overseen by the country’s top securities regulator, released new rules Feb. 24 to tighten registration requirements for companies that seek to register as private fund managers (PFMs) and newly established privately offered funds. The rules will take effect May 1, the association said.