CSRC Revises the Measures for the Supervision and Management of PE Investment Funds

On December 8, 2023, the China Securities Regulatory Commission (CSRC) released the revised Measures for the Supervision and Management of Private Equity Investment Funds (Exposure Draft). The deadline for public feedback is January 8, 2024.

The draft document has 82 articles in ten chapters, which clarifies the scope of the application, improves the whole chain supervision, refines classified supervision, standardizes the identification of qualified investors, strictly supervises and manages raised funds, clarifies requirements on investment operation, information disclosure and submission, and raises the costs of violating laws and regulations.

The document retains the current requirement that a single private equity investment fund’s paid-in capital be no less than RMB 1 million, but increases the paid-in capital of a single private equity fund and venture capital fund from RMB 1 million to RMB 3 million. At the same time, it is required that the paid-in capital of private equity funds investing in special circumstances is not less than RMB 5 million, and the actual payment amount of natural persons investing in a single investment target is not less than RMB 10 million.