Private funds finally given regulatory system

January 25, 2013 | BY

clpstaff

Fund management companies in China used to face a restrictive investment regime, especially as legislation did not cover privately raised funds. Amendments to the Securities Investment Fund Law have opened up the process

The Standing Committee of the National People's Congress passed the amendments to the Securities Investment Fund Law on December 28. They will come into effect in June this year.

Market observers and practitioners have praised the changes to the Law. The CSRC has been focusing on reforms to the fund management sector in recent years and the amendments show their determination to relax the market and begin to bring it in line with international practices.

First adopted in October 2003, the PRC Securities Investment Fund Law (中华人民共和国证券投资基金法) applies to public sale of fund shares to raise capital for securities investment funds that are managed by fund managers.

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