China May Let Asset Managers Invest Some Funds in Private Equity
China plans to allow asset management companies to invest in private equity with funds from their special-asset management units.
The plan is meant to prompt private investment in unlisted companies’ stocks and debt, according to a statement posted on the China Securities Regulatory Commission’s website today.
The nation plans to remove allocation restrictions for special accounts’ securities investments. The funds aren’t currently allowed to buy a single stock exceeding 20 percent of their planned net asset value or a single non-stock security exceeding 10 percent.
The commission also plans to ease business supervision and strengthen risk controls on special-asset management units. The relaxation of the rules will help to support investment in the real economy, the commission said.
To contact Bloomberg News staff for this story: Feifei Shen in Beijing at fshen11@bloomberg.net
To contact the editor responsible for this story: Joshua Fellman at jfellman@bloomberg.net
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