BEIJING: Chinese Premier Li Qiang has signed a State Council decree unveiling a regulation on the supervision and administration of private investment funds.
The regulation, with 62 items in seven chapters, will come into effect on September 1, 2023, the State Council said in a statement.
The regulation aims to encourage the standardized and healthy development of the private investment fund industry, better protect the legitimate rights and interests of investors and encourage the industry to further play a role in serving the real economy and promoting scientific and technological innovation.
The regulation clarifies the scope of application, specifies the obligations and requirements of private fund managers and custodians, regulates fundraising and investment operations, makes special provisions for venture capital funds, and strengthens supervision, management and legal liability. China is mulling several policies to promote the sustained recovery of its economy, according to a State Council executive meeting on June 16.
The private investment fund sector has developed rapidly in China, playing a positive role in serving the real economy and supporting entrepreneurship and innovation, the meeting said, adding that specialized administrative regulations will help protect investors and safeguard the healthy development of the sector. –The Daily Mail-Global Times news exchange item
