CHINA Law and Practice Contributed by: Alan Du and Yiwei Shi, King & Wood Mallesons
overseas fund management companies, com - mercial banks, insurance companies and securi - ties companies. 2.3 Regulatory Environment 2.3.1 Regulatory Regime In general, the CSRC is the regulator of the listed securities and futures market, and also super - vises and administers the private funds market. Under the supervision of the CSRC, the AMAC is a self-disciplinary organisation, but the authors tend to believe that it is also the de facto regula - tor of the private funds industry. It has issued a set of self-disciplinary rules on the registration of private fund managers, the filing of private funds, disclosure requirements, etc. In 2014, the CSRC promulgated the Interim Measures for the Supervision and Administra - tion of Private Investment Funds, which provide a general regulatory regime for the private funds industry. The AMAC subsequently released a series of detailed rules. In January 2021, the CSRC promulgated the Provisions on Strengthening the Supervision of Private Funds (the “Private Funds Provisions”), which outline the latest regulatory framework regarding private funds. In June 2022, the AMAC promulgated the new List of Requirements for Private Fund Manager Registration, the Key Points of Private Equity Fund Filing and the Key Points of Private Securities Investment Fund Filing, stipulating the latest regulations regard - ing fund manager registration and the filing of private funds. In February 2023, the AMAC promulgated the Measures for Registration and Filing of Private Investment Funds (effective on 1 May 2023), further summarising, revising and highlighting
regulations regarding fund manager registration and the filing of private funds. In July 2023, the State Council issued the Regu - lation on Supervision and Administration of Pri - vate Investment Funds (effective on 1 September 2023 (the “Regulation”)). The Regulation essen - tially follows and emphasises the pre-existing rules, but the authority of the Regulation is higher than those rules issued by the CSRC and AMAC. In September 2023, the AMAC released a series of detailed new rules regarding the filing of private funds (see 4.1 Recent Developments and Proposals for Reform ). In April 2024, the AMAC promulgated the Guide - line for Operation of Private Securities Invest - ment Funds (effective on 1 August 2024), raising the operational requirements for private securi - ties investment funds, and protecting the legiti - mate rights and interests of investors. Under the preceding regulations, private funds are not permitted to directly or indirectly make investments that are prohibited or restricted by the government, or that are inconsistent with national industrial policies, environmental protection policies or land administration poli - cies, with the exception of investments in listed securities. Investing in loans (including disguised loans) and providing guarantees are also prohib - ited by the AMAC. However, for the purpose of equity investment, if the borrowing or guarantee period is less than one year, private equity funds may provide loans or guarantees to portfolio companies. In addition, private funds may not invest in credit assets such as factoring assets, financial leasing assets or pawn assets, nor make investments that have unlimited liability.
119 CHAMBERS.COM
Powered by FlippingBook