China Securities Regulatory Commission, Measures for the Administration of the Operation of Public Securities Investment Funds (2013 Revision Draft for Comments)

Issued: April 26 2013

Main contents: In the middles of 2012, the introduction of seed funds lowered the threshold for the establishment of funds from Rmb200 million to Rmb50 million. This Draft for Comment proposes to lower the threshold for public funds further to Rmb10 million. This means that when a fund manager offers a fund where not less than an amount of Rmb10 million in company shareholder funds, the company's own funds and the funds of such persons as the company's senior management personnel or fund managers is used to subscribe for the fund and the lock-up period is not less than three years, it may establish a seed fund. The requirements of initial offer proceeds of not less than Rmb50 million and the number of holders of not less than 200 are abolished. This is consistent with the criteria for the establishment of seed funds abroad.