Chinese industry group announces PE registration rules
The Asset Management Association of China (AMAC), a group set up by the China Securities Regulatory Commission (CSRC), has announced rules addressing domestic private equity firms' record management, operational standards and information disclosure.
According to a statement, all Chinese private equity fund managers are required to register with AMAC. Once they do, managers will be eligible for certain incentives, including applying for licenses to operate mutual funds.
Under the new guidance, which takes effect from February 7, managers must report to AMAC within 20 days of completing their fundraising. An online disclosure system has been established, which managers can use to submit details regarding fund size and participating investors.
Some of this information will be publicly available.
While sunshine fund managers - who only invest in public equities - must subsequently report to AMAC every month, private equity funds are required to provide updates once a quarter.
AMAC also wants to standardize qualifications, requiring fund managers to sit the organization's professional examination, or have at least three years investment and asset management experience in the industry.
More than 230 private equity firms have registered with AMAC, including Hony Capital, CDH Investments and Goldstone Investment.
The National Development and Regulatory Commission (NDRC) was the preeminent regulator of private equity in China but it stopped registering domestic funds in August, having lost out to the CSRC.
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