China Drafts Rules to Lure Pension, Bank Funds Into Private Placements
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China’s securities regulator has proposed amendments aimed at broadening the pool of financial institutions eligible to become strategic investors in private placements. The new rules, which set a minimum 5% subscription threshold, seek to encourage the inflow of “patient capital” into listed companies.
The draft amendments, released on Friday by the China Securities Regulatory Commission (CSRC) for public comment, are designed to channel funds from pensions, insurers, and banks into the stock market by distinguishing these institutions as “capital investors” from traditional industrial stakeholders.
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- China’s securities regulator proposes allowing more financial institutions, like pension and insurance funds, as “capital investors” in private placements, with a 5% minimum subscription.
- The rules distinguish “capital investors” (long-term financial backers) from “industrial investors” (contributors of strategic industry resources).
- Strict restrictions aim to prevent rule circumvention, require disclosure, and follow expanded 2025 guidance to boost long-term market capital.
- Everbright Wealth Management Co.
- Everbright Wealth Management Co. participated in a private placement by Shanghai Waigaoqiao Group Co. in April 2025. They purchased shares worth nearly 20 million yuan ($2.9 million) with a six-month lock-up period. This participation followed guidance issued in January 2025 aimed at attracting medium and long-term capital into the market, expanding the scope of strategic investors to include entities like wealth management products.
- Shanghai Waigaoqiao Group Co.
- Shanghai Waigaoqiao Group Co. was part of a private placement in April 2025. Everbright Wealth Management Co. purchased nearly 20 million yuan ($2.9 million) worth of its shares. This transaction marked the first instance after January 2025 guidance broadened the scope of strategic investors to include pension and insurance funds.
- January 2025：
- Central Financial Commission and other agencies issued a framework to attract medium- and long-term capital into the market, expanding the scope of strategic investors to include pension and insurance funds.
- April 2025：
- Everbright Wealth Management Co. participated in a private placement by Shanghai Waigaoqiao Group Co., purchasing nearly 20 million yuan worth of shares, with a six-month lock-up. This was the first case following the January 2025 guidance.
- January 30, 2026：
- China Securities Regulatory Commission (CSRC) released draft amendments for public comment to broaden the pool of eligible strategic investors in private placements.
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