Bloomberg News

China May Let Asset Managers Invest Some Funds in Private Equity

June 29, 2012

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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