Chinese regulators tighten laws on private fundraising
China Securities Regulatory Commission (CSRC) is set to tighten private fundraising, forcing more than 2,000 firms out of business, as authorities look to clean up an industry that has been plagued by fraud. The firms have been told they can trade again if they meet new compliance rules. Self-governing body, the Asset Management Industry Association of China, has launched national qualification exams for private investment fund practitioners, which will be mandatory for those looking to raise funds from next year, however, these exams have been criticised in some quarters for not being run directly by the CRSC. China’s private equity fund sector, which comprises 25.8k registered organisations with assets of ¥5tn, was unregulated until 2013.

An advertising board showing a Chinese stone lion is pictured near an entrance to the headquarters of China Securities Regulatory Commission in Beijing. Photo: Reuters