NDRC stops registering domestic private equity funds

A statement issued last month, approved by the State Council, said that the CSRC will hold the private equity oversight remit, with NDRC helping to promote the industry and overseeing government participation in it.

The Asset Management Association of China (AMAC), a group set up by the securities regulator last year, is drafting new set of rules addressing record management, standard operation, information disclosures, as well as measures to prevent illegal fundraising, The 21st Century Business Herald reported.

"AMAC has replaced the NDRC as the registration agency of PE managers in China," said Howhow Zhang, research director at advisory firm Z-Ben. "But it may take some time before AMAC has all the document templates, team and processes in place to accept submission from PE managers."

This could, however, lengthen the IPO approvals process and further delay exits. When a company files to list with the CSRC, it has to disclose its private equity investor registration and fundraising record.

According to the regulations issued by the NDRC, all onshore private equity firms with assets more than RMB500 million ($80 million) are required to register with the NDRC. Those with a lower capital level must file with the relevant provincial government authority.

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• Topics
• Greater China
• Regulation
• Renminbi fund
• China
• NDRC
• CSRC
• regulation
• Renminbi
• IPO