Monday March 11 2019

News Source: Fund Regulation

Focus: General - Fund Regulation

Type: General

Country: China

China has reportedly drafted tougher rules for its private fund industry, tightening scrutiny as the government reins in financial risks.

The proposed new Asset Management Association of China (AMAC) rules would require hedge funds and venture capital funds to raise at least 10 million yuan before registering a product. The levels for private equity funds and asset allocation funds – a new category designed mostly for funds of funds – are 30 million yuan and 50 million yuan respectively.

The rules, which are still under discussion and could be revised, also cap investment in a single project at 20% of a fund’s assets and restrict co-investment by the management firm and its employees to no more than that percentage in any fund.

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