China's premier advocates PE-friendly policies

China will set no administrative approvals for qualified and legal private offerings, Li said, while chairing a meeting of the State Council. He also urged private equity to fund small and medium-sized enterprises (SMEs), innovative financial technologies and services, and strategic emerging industries' growth.

The domestic PE industry is now under the supervision of the China Securities Regulatory Commission (CSRC). The Asset Management Association of China (AMAC), an industry organization sponsored by the CSRC, requires managers to disclose personnel details as well as information on fund size and participating investors.

Fund managers currently don't need approval from the regulator to conduct private equity activities.

Li added that efforts should to introduce a registration-based IPO system and better delisting provisions, building a multi-tier equity market. These measures will result in listed companies permforming better and generating stronger returns for investors, he said.

China will also make it easier for foreign investors to get access to the capital markets, and increase cross-boarder investment.

Li's comments went to to cover the need for bond market and futures trading reforms, healthy development of the internet finance sector, and efforts to protect small investors and punish those guilty of providing false statements, insider dealing and market manipulation.

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• Topics
• Greater China
• Regulation
• China
• regulation