Communist Party Cadres Told to Steer Clear of Private Equity

China’s top anti-corruption watchdog has warned Communist Party cadres who hold leadership positions in certain public offices to steer clear of investing in private equity (PE) funds in case they end up being investigated for graft.

For these officials, putting money in PE funds, which usually invest in unlisted companies, is akin to running a business by stealth, and can easily lead to corruption, according to a book compiled by the Central Commission for Discipline Inspection (CCDI) on implementing law and party discipline.