The General Office of the State Council Issues Opinions on Strengthening Private Fund Supervision

The General Office of the State Council recently issued a guideline to make arrangements around strengthening supervision, preventing risks, and promoting the highquality development of private investment funds. The document was released by the Chinese government website, and the release date was June 5. The guideline proposes improving systems for private fund registration and filing, risk monitoring, information disclosure, and fundraising, strengthening classified supervision of government investment funds, stateowned enterprise investment funds, and private securities funds, and advancing the establishment of a transparent risk monitoring platform to enhance the ability to identify abnormal behavior and potential risks. The document also makes clear that it will severely crack down on illegal fundraising, embezzlement and misappropriation,利益输送, and illegal crossborder capital flows, while properly addressing existing risks, promoting the industry's development within a regulated framework, and supporting private equity funds and venture capital funds that invest early, small, longterm, and in hard technologies to better serve scientific and technological innovation.