Private Equity and Venture Capital

Private equity and venture capital funds are only allowed to target qualified investors that satisfy the requirements of new rules

Central government finances may directly invest in venture investment enterprises.

As one of China's preeminent fund formation hub cities, Tianjin is regarded by many industry participants as an influential barometer for other jurisdictions' private equity-related regulation. The city recently released new measures that enforce stricter supervision on a wide spectrum of fund formation, administrative and operation matters

New guidelines from China's banking authority open up stock index futures trading to trust companies. However, strict restrictions and stringent qualification criteria have drawn mixed reactions from trust players

First attempt to regulate private equity enterprises nationwide.

The Circular aims to further regulate the administration by record filing of equity investment enterprises in the pilot areas: Tianjin Binhai New Area, Beijing Zhongguancun Science and Technology Park, Wuhan East Lake New Technology Development Zone and the Yangtze Delta.

New circular provides detailed operational rules

The release of several recent private equity-related regulations indicates the government's encouragement for increased foreign participation in this space. Shanghai's new Pilot Measures provide several new fund structures for offshore investors, but in order to advance the PE market regulators need to provide more guidance to address other challenges like fund-raising, partnership asset transfers, exits and taxes

The release of several recent private equity-related regulations indicates the government's encouragement for increased foreign participation in this space. Shanghai's new Pilot Measures provide several new fund structures for offshore investors, but in order to advance the PE market regulators need to provide more guidance to address other challenges like fund-raising, partnership asset transfers, exits and taxes