CSRC to restructure, introduce private equity department
The China Securities Regulatory Commission (CSRC) is undergoing a restructuring that will see the creation of four divisions to oversee fast-moving markets, including private equity.
The new divisions will cover bond trading, private equity, innovative businesses, and illegal fundraising, according to a statement.
In addition, the regulator's eight existing departments will be merged into four. Two IPO units will be combined into one, as will two units responsible for supervising listed companies. Overlapping departments also have been restructured in the mutual fund supervision and futures trading areas.
The restructuring will address an oversight "vacuum" whererby some areas are not properly regulated, while in other areas duplication of resources is causing market inefficiency.
The regulator said it will further define each department's responsibilities after the restructuring and allocate staff accordingly.
A new set of rules on the regulation of domesitc private equity is expected now that the CSRC has become the asset class' preeminent regulator, supplanting the National Development and Regulatory Commission (NDRC).
Two months ago, the Asset Management Association of China (AMAC), a group set up by the CSRC, announced rules addressing domestic private equity firms' record management, operational standards and information disclosure.
More than 230 private equity firms have registered with AMAC, including Hony Capital, CDH Investments and Goldstone Investment.
The NDRC stopped registering domestic funds in August.
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