China’s securities regulator has conducted a
sweeping crackdown on illegal private equity fundraising
activities onshore, but rules and regulations specifically
tailored to address them remain outstanding.
The China Securities Regulatory Commission (CSRC) announced
on August 16 that it had inspected 305 private equity and
privately-offered fund management firms in the first half of
But counsel in China have said regulators need to take swift
action against private equity entities that have committed
fraud, while strengthening existing rules to create a
"If the regulation of private equity fundraising is not
strengthened, then it will have an impact on the Chinese
Zhang Baosheng, partner at King & Wood Mallesons in
Beijing. He added that this is not merely the government taking
punitive action against private funds, it is also about
mitigating their potential harm to the stability of
China’s financial system.
A total of 2462 individual...