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Real-time News
June 5th - The State Council announced the appointment and removal of state personnel. Liu Sushe was appointed Vice Minister of Culture and Tourism; Hong Zongming was appointed Vice Minister of Veterans Affairs; and Ding Xiangqun (female) was appointed Director of the State Financial Supervision and Administration Bureau. Liu Sushe was removed from his position as Vice Chairman of the National Development and Reform Commission; Chen Jiachang was removed from his position as Vice Minister of Science and Technology; Ma Feixiong was removed from his position as Vice Minister of Veterans Affairs; Zhang Yuzhuo was removed from his position as Director of the State-owned Assets Supervision and Administration Commission of the State Council; and Han Dong was removed from his position as Vice Director of the State Administration of Radio and Television.On June 5th, the General Office of the State Council issued guiding opinions on strengthening supervision, preventing risks, and promoting the high-quality development of private equity investment funds. The opinions state that the handling of risks associated with private equity fund managers shall be organized and implemented by the provincial-level or municipal-level governments where the managers are registered, in conjunction with the securities regulatory agency of the State Council and other relevant departments. The provincial-level or municipal-level governments where the managers are registered shall promptly ascertain the situation, formulate risk mitigation and disposal plans in accordance with market-oriented and rule-of-law principles, and carry out work such as asset recovery, asset verification, and distribution and liquidation, avoiding the expectation that risk mitigation and disposal will rely on public resources. Private equity fund risks shall be mitigated and disposed of under relevant local risk disposal mechanisms. The securities regulatory agency of the State Council and its branches shall actively cooperate with local governments in carrying out risk mitigation and disposal work, and properly handle handling and punishment. If multiple private equity fund managers controlled by the same actual controller across regions experience risks, the provincial-level or municipal-level governments responsible for leading the effort shall, in principle, be determined in the following order: the registered location of the headquarters enterprise, the place where the core enterprise pays its income tax, and the place where the personal income tax of the senior management personnel pays its income tax. Private equity funds shall not be used to illegally raise debt to resolve debt or dispose of problematic enterprises, to prevent the formation of new risk points.Both WTI and Brent crude oil prices fell by nearly $1 in the short term, currently trading at $93.59/barrel and $93.36/barrel respectively.On June 5th, a spokesperson for the China Securities Regulatory Commission (CSRC) answered questions from reporters regarding the "Guiding Opinions of the General Office of the State Council on Strengthening Supervision, Preventing Risks, and Promoting the High-Quality Development of Private Equity Investment Funds." The "Guiding Opinions" is a directional and fundamental document within the "1+N+X" regulatory framework for the private equity fund sector. Going forward, the CSRC will resolutely implement the decisions and deployments of the CPC Central Committee and the State Council, formulate a three-year action plan for implementing the "Guiding Opinions," and actively collaborate with macroeconomic policy departments, state-owned assets and industry regulatory authorities, financial management departments, public security organs, and local governments to further enhance their sense of responsibility, closely cooperate to form a synergy, and promote the effective implementation of various tasks and initiatives.On June 5th, the China Securities Regulatory Commission (CSRC) stated that it attaches great importance to the supervision of private equity funds and continues to intensify its crackdown on illegal and irregular activities. From 2023 to the first quarter of 2026, administrative regulatory measures were taken against 1,805 private equity fund managers and related entities, administrative penalties were imposed on 97 private equity fund managers and related entities, and 86 suspected criminal leads were transferred to public security organs. The Asset Management Association of China (AMAC) revoked the registration of 5,444 private equity fund managers. Strengthening supervision and preventing risks are not the end goal, but rather a means to an end, ultimately aimed at promoting the high-quality development of the industry. Strengthening the supervision of private equity funds is conducive to timely eliminating bad actors and preventing the bad from driving out the good, creating a favorable environment for the standardized development of the private equity fund industry; it also helps to urge private equity fund managers to fully fulfill their fiduciary duties, protect the legitimate rights and interests of investors, maintain investor confidence, and lay the foundation for the long-term standardized development of the private equity fund industry.
