Regulators Tighten Grip on China’s $2.9 Trillion Private Fund Industry

While private fund investment in China has ballooned into a 20 trillion yuan ($2.9 trillion) beast, risks have grown, prompting authorities to curb the industry’s rampant growth.

The Asset Management Association of China (AMAC), a fund industry group overseen by the country’s top securities regulator, released new rules on Feb. 24 to tighten registration requirements for companies who seek to register as private fund managers (PFMs) and newly established privately offered funds. The rules will take effect on May 1, the association said.