China’s AMAC clamps down on domestic private funds

These firms manage a variety of different funds, including "sunshine funds" - pools of privately-raised capital for investment in public securities - traditional PE and VC funds, and specialist vehicles covering areas such as wine and art.

There hvae been two batches of cancellations since AMAC began its clampdown in February, according to a statement. The industry body noted that some firms registered as private fund managers have no intention of operating such businesses. Some lack basic infrastructure, such as offices, investment professionals, and operating capital. There are also institutions involved in peer-to-peer online lending, private lending, loan guarantee businesses, and illegal fundraising.

"A large number of private fund managers registered previously have failed to conduct real business for a long time. This shell-company phenomenon has disturbed the industry order and affected the truthfulness and effectiveness of monitoring activities," the statement said.

More than 16,000 private fund firms remain registered with AMAC; they have raised approximately RMB 6.5 trillion ($980 billion) between them.

In February, AMAC issued a notice outlining more stringent registration terms for fund managers. These include a requirement that new private fund firms should launch products within six months of registration or risk having their licenses revoked. Fund managers must also pass a national qualification exam, with those who fail barred from raising money.

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• Topics
• Greater China
• Renminbi fund
• Regulation
• Fundraising
• China
• CSRC