Asset Management Association of China, Remarks on the Record Filing of Private Investment Funds

中国证券投资基金业协会私募投资基金备案须知

January 23, 2020 | BY

Susan Mok

Private equity investment should not be a means of lending

Clp Reference: 3700/19.12.23 Promulgated: 2019-12-23 Effective: 2019-12-23
|

Issued: December 23, 2019

Effective: as of date of issuance

Main contents: The following offering and investment activities that are not in keeping with the essence of "funds" fall outside the scope of record filing of private investment funds:

1 .    engaging in a disguised manner in the lending (deposit taking) business of financial institutions or directly investing in the credit assets of financial institutions;

2 .    engaging in regular, for-profit private lending activities, including but not limited to engaging in the aforementioned activities by means of entrusted loans, trust loans, etc.; and

3 .    engaging in a disguised manner in lending (deposit taking) activities by providing unconditional hard buyback arrangements and the fund returns being unconnected to the business performance or returns of the investment target.

4 .    investing in factoring assets, financial leasing assets, pawn assets and other such assets, or assets and equity of, or beneficial rights in, business that is mentioned in the Questions and Answers Concerning Registration and Record Filing of Private Funds (7) as conflicting with private investment funds; and

5 .    indirectly or in a disguised manner engaging in the foregoing activities through investing in a partnership, company, asset management product (including private investment funds), etc. (Article 2).

clp reference:3700/19.12.23 issued:2019-12-23 effective:2019-12-23

This premium content is reserved for
China Law & Practice Subscribers.

  • A database of over 3,000 essential documents including key PRC legislation translated into English
  • A choice of newsletters to alert you to changes affecting your business including sector specific updates
  • Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]