China issued guidance on private funds on June 5 covering roughly 23 tln yuan of
assets. The document said private venture funds have played a key role in
supporting tech innovation and SMEs but some have deviated from mandates and
shown weak internal controls. The guidance aims to steer private VC funds back
to core tech/innovation activities, channel more capital to support the real
economy, and purge low-quality private fund products. Private securities funds
account for about 10-20% of A-share secondary market turnover.
