China to rein in private equity fundsILLICIT FUNDRAISING: The regulator vowed to crack down on ‘fake’ private equity funds that are sold to the general public instead of targeted investors, an official saidBloombergChina’s securities regulator said it plans to rein in the nation’s private equity and venture capital funds, stop public offerings disguised as private placements and fight embezzlement of assets. “Private equity funds must return to the defined role of being private and supporting innovation and start-ups,” Yi said in the speech published on the commission’s Web site. The commission has been cracking down on irregularities among private funds — which cover private equity and venture capital funds, as well as the Chinese equivalent of hedge funds — with annual inspections of hundreds of players from 2016 to 2019. Regulators have in the meantime encouraged the development of private equity funds as a channel of direct financing to support the economy. The number of registered fund managers has exploded in the past several years, with “false” private equity expanding alongside “true” private equity, damaging the industry, Yi said in his recent speech.

Source: Taipei Times August 31, 2021 15:56 UTC