Chinese government to take control of poorly managed private funds
The agency in charge aims to implement measures to curb public offerings disguised as private capital in China
The main organism in charge of regulating China’s securities announced that it will take strong measures against poorly managed private funds, in order to give a stop to public offerings disguised as private capital.
Yi Huiman, president of the China Securities Regulatory Commission (CSRC), indicated that the Asian giant’s fund industry has become a high-impact force at the service of the economy and wealth management, thus emphasizing the importance that falls on managers to align their interests with those of investors.
Huiman added that the fund industry has been key in reforming China’s old-age pension system, as well as innovation and entrepreneurship. It is estimated that at the end of June, at least 3.6 trillion yuan of pensions were in the hands of fund managers.
To improve regulation, the authorities will introduce rules for private funds at the appropriate time and continue to improve the fund regulation system to facilitate institutional investors, encourage long-term investment in the capital market, and protect market order as well as the legitimate rights and interests of investors, said the CSRC representative.
K. Tovar
Source: RT
