China Securities Regulatory Commission, Several Provisions on Strengthening the Oversight of Private Investment Funds (Draft for Comments)

Issued: September 11, 2020

Main contents: The number of investors in a private fund may not, in the aggregate, exceed the specific number specified in law. For a private fund established as a joint stock limited company or by contract, the total may not, in the aggregate, exceed 200 persons, or for a private fund established in the form of a limited liability company or partnership, the total may not, in the aggregate, exceed 50 persons. Where an investor transfers fund units, the transferee shall be a qualified investor and the number of investors after the acquisition of the fund units shall comply with the provisions of this Article.

No entity or individual may circumvent the qualified investor criteria or investor number limit in a disguised manner by means such as breaking up the fund units or right to receive benefits into smaller parts for the transfer or establishing multiple private funds for a single project (Article 7).