The State Council General Office issued guidance to strengthen oversight and
curb risks while promoting high-quality development of private investment funds.
It orders strict enforcement against illegal fundraising, embezzlement,
self-lending/self-use, benefit transfers, illicit cross-border capital flows and
private funds' participation in illegal fundraising, and calls for tougher legal
penalties. Public security organs, under local government leadership, must
promptly and strictly investigate private-fund crimes with prominent risk,
serious nature or wide impact. Police are to coordinate work arrangements with
the China Securities Regulatory Commission (CSRC) and its local branches to
improve joint action against suspected criminal conduct. For major cross-region
or cross-sector cases the guidance urges a joint case-list supervision system to
strengthen case coordination, operational guidance and information sharing.
