China on Sunday published a regulation on the supervision and management of private equity funds, the country's first administrative regulation of its kind. The regulation, which has 62 items in seven chapters, will come into effect on Sept. 1, according to a State Council order issued on Sunday.

An official from the Ministry of Justice and the China Securities Regulatory Commission (CSRC) said on Sunday that the introduction of the regulation is conducive to improving the regulatory system for private equity funds and the healthy development of the industry, and encouraging the industry to serve the real economy and promote technology play a more important role in innovation.

In recent years, China's private equity investment fund industry has developed steadily. As of May 2023, there were 22,000 private equity fund managers registered with the Asset Management Association of China (AMAC), managing 153,000 funds totaling 21 trillion yuan ($2.9 trillion).

According to statistics from the China Securities Regulatory Commission, as of the first quarter of 2023, private equity funds have invested in nearly 200,000 shares of listed or unlisted company equity securities, new third-board companies and refinancing projects, forming a share capital of more than 11.6 trillion yuan.

At the same time, private equity investment funds actively support computing, semiconductors, medicine, biology and other key technological innovation fields and national strategies. As of the first quarter of 2023, private equity investment funds have invested nearly 5 trillion yuan in these companies.

China's top securities regulator, the China Securities Regulatory Commission (CSRC), said on Saturday that it will promote the high-quality development of the mutual fund industry and steadily reduce industry fee rates.

The CSRC statement came after a number of Chinese fund managers announced on Saturday that they would cut management and custody fees for their actively managed stock fund products to no more than 1.2 percent and 0.2 percent, respectively, from Monday.

The China Securities Regulatory Commission stated that it will guide the public offering fund sector to promote the reform of fee rates in a steady and orderly manner, and support public offering fund managers and other institutions in the industry to appropriately reduce fund fee rates.

According to data from the Asset Management Association of China, as of the end of this year, the total assets under management of China's publicly offered funds stood at 77.3 trillion yuan.