Asset Management Association of China, Guidelines for the Operation of Private Securities Investment Funds (Draft for Comments)

Issued: April 28, 2023

Main contents: [Offering and Existence Thresholds] The initial paid-in offering proceeds of a private securities investment fund shall not be less than RMB 10 million. It shall be expressly specified in the fund contract that where the net asset value of a private securities investment fund falls and remains below RMB 10 million for 60 consecutive trading days, such fund shall enter into a liquidation procedure, unless the change in net value is due to market fluctuations (Article 5).

[Stress Tests] Where the total amount of funds under the management of private securities fund managers under the control of one de facto controller is at least RMB 2 billion as at the end of the most recent financial year, such de facto controller shall establish and improve on an ongoing basis liquidity risk monitoring, early warning and emergency handling, and warning line and stop-loss line risk management systems, and conduct stress tests at least once per quarter (Article 25).