State Council: Strengthen Regulation of Private Equity Funds, Strictly Control the Establishment of Government Funds and Violations

The General Office of the State Council has issued an opinion calling for enhanced regulation of private equity investment funds, risk prevention, and promotion of high-quality development. The document proposes optimizing registration and filing rules, strictly controlling the establishment of new government investment funds, and prohibiting counties and districts from establishing new ones in principle. It also emphasizes strict management of registration involving terms like 'private equity fund' in names and business scopes. Regulators will refine risk assessment standards, promote differentiated supervision, and intensify inspections of key institutions, cross-regional operating entities, and violations such as proxy holding and channeling. Private equity funds are strictly prohibited from engaging in illegal lending or practices like 'nominal equity, actual debt.'