Multiple private fund firms said they began receiving notices from cooperating broker-dealers on the evening of June 23 that Chinese regulators have ordered a suspension on increases to managers' cross-border total return swap (TRS) capacity. The instruction has prompted firms that use cross-border TRS to access overseas markets to reassess strategies; sources said existing positions are largely unaffected for now but new allocations cannot be expanded, and some products face sell-only, no-repla

Multiple private fund firms said they began receiving notices from cooperating broker-dealers on the evening of June 23 that Chinese regulators have ordered a suspension on increases to managers' cross-border total return swap (TRS) capacity. The instruction has prompted firms that use cross-border TRS to access overseas markets to reassess strategies; sources said existing positions are largely unaffected for now but new allocations cannot be expanded, and some products face sell-only, no-replacement constraints. No formal regulatory notice has been published to date.