» The central government should assume regulation of private equity and venture capital firms, which are now mainly subject to local government rules, said Wang Ou, researcher at the China Securities Regulatory Commission. He also urged regulators to treat such firms as financial institutions, contrary to their current legal status in China. Wang said the CSRC is stepping up research on building a Chinese-style regulatory framework to support development in the private equity and venture.
Full article in Chinese 中国 Source: Caijing, 20.10.2009
Currently Private Equity firms are in a legal grey are, which allows Chinese firms to trade in overseas markets, and foreign firms to trade A-shares and Futures on Chinas Exchanges, without restriction and costly processes (in a stark opposited to QDII’s and QFII’s ), amongst other investment and trading activities.In contrast to the other non-regulated funds and trading firms, PE firms can apply for a foreign curreny account by SAFE introduce and retract large sum’s.
Note by FiNETIK, 20.10.2009
Filed under: Asia, China, News, Risk Management, Services , China 中国, CSRC China Securities Regulatory Commision, Hedge Fund, QDII, QFII, Regulation, Risk Management, SAFE State Administration of Foreign Exchange, Venture Capital
