CSRC Warns Two PE Firms in Bond Market Enforcement Push
Listen to the full version
China’s securities regulator has issued warnings to two private equity (PE) firms once central to a controversial bond financing practice known as “structured issuance,” as authorities step up enforcement against a model widely criticized for distorting market pricing and linked to illicit payments.
Investigations by the Tianjin bureau of the China Securities Regulatory Commission found Bluestone Asset Management Co. Ltd. and Genial Flow Asset Management Co. Ltd. had breached rules by conducting business outside their private equity mandates, creating conflicts of interest, according to warning letters issued on Monday.
Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.
Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.
- DIGEST HUB
Digest Hub
Back
- China's regulator warned Bluestone and Genial Flow for violating PE rules and fostering conflicts of interest related to "structured issuance" in bond markets.
- Executives from both firms face regulatory scrutiny; Bluestone's controller Rao Meixiu has been missing since October 2024.
- Structured issuance, once totaling 40 billion yuan for Bluestone, was banned for private funds in 2023, with increased enforcement and penalties in 2025.
- Bluestone Asset Management Co. Ltd.
- Bluestone Asset Management Co. Ltd. (某资产管理有限公司) is a private equity firm that received a warning from the Tianjin bureau of the China Securities Regulatory Commission. They were found to have breached rules by operating outside their private equity mandates and creating conflicts of interest. Bluestone was an early promoter of "structured issuance," a controversial bond financing practice. At its peak, Bluestone managed products totaling around 40 billion yuan. The whereabouts of its actual controller, Rao Meixiu, have been unknown since October 2024.
- Genial Flow Asset Management Co. Ltd.
- Genial Flow Asset Management Co. Ltd. received a warning from the Tianjin bureau of the China Securities Regulatory Commission for operating outside its private equity mandate and creating conflicts of interest. Its general manager, Cheng Peng, faces regulatory scrutiny, and its legal representative had high-level consumption restrictions in December 2024. Genial Flow was an early promoter of "structured issuance," a controversial bond financing practice.
- 2023：
- The Asset Management Association of China issued operational guidelines explicitly banning private fund managers from participating in structured bond issuance.
- October 2024：
- Bluestone’s actual controller, Rao Meixiu, became out of contact, as learned by Caixin.
- November 2024 – Publication date：
- Caixin’s calls and messages to Rao Meixiu went unanswered.
- December 2024：
- The legal representative of Genial Flow was placed under restrictions on high-level consumption.
- 2025：
- Multiple agencies issued more than a dozen penalties related to structured issuance.
- January 5, 2026：
- Warning letters were issued by the Tianjin bureau of the China Securities Regulatory Commission to Bluestone Asset Management and Genial Flow Asset Management for breaches in their private equity mandates.
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新