The Asset Management Association of China (hereinafter referred to as the "Association") released the keynote speech delivered by Yi Huiman, chairman of the China Securities Regulatory Commission, at the 14th Lujiazui Forum on June 8, 2023. The speech mentioned that we should continue to vigorously develop equity funds, support the steady development of securities funds and futures private equity asset management products, guide the standardized and healthy development of private securities investment funds, and further promote various medium and long-term funds to increase the allocation of equity assets. At the same time, strengthen horizontal coordination, improve taxation, accounting and other supporting systems and mechanisms, further break through pain points and blockages, and create a more favorable institutional environment for various institutional investors to enter the market.

On June 11, 2023, the association released the speech delivered by He Yanchun, secretary of the party committee and president of the association, at the first forum on the rule of law in China's capital market. The speech mentioned that the association will actively participate in the construction of the rule of law in the industry and help create a strong development environment. The first is to promote the increase in the supply of basic rule of law, promote the introduction of regulations on the management of private equity investment funds, and make institutional arrangements in terms of market access, business development requirements, supervision and management, and responsibility allocation; the second is to promote the formulation of private equity judicial policies and improve the judgment of private equity fund disputes The third is to improve the self-regulatory rule system, formulate the plan for the self-regulatory rule system of funds, and ensure that there are regulations to follow in all links. The fourth is to effectively strengthen investor protection, guide the industry to improve incentive and restraint mechanisms through self-discipline conventions, industry initiatives, etc.; promote the improvement of multiple dispute resolution mechanisms, and smooth channels for rights protection and relief.

On June 16, 2023, the executive meeting of the State Council reviewed and approved the "Regulations on the Supervision and Administration of Private Equity Investment Funds (Draft)". The meeting also pointed out that special administrative regulations will be formulated to bring private equity investment fund business activities into a legalized and standardized track for supervision, which will help better protect the rights and interests of investors and promote the standardized development of the industry. It is necessary to strengthen source control in response to outstanding problems in the industry, and severely crack down on illegal financial activities such as illegal fundraising in the name of "private equity funds". It is necessary to strengthen the coordination of supervision and management and development policies, implement differentiated supervision of different types of private equity investment funds, especially venture capital funds, and promptly introduce specific policies to promote the development of venture capital funds.

The court of second instance held that the obligation of financial product managers to explain relevant information and disclose risks of financial products is the prerequisite for procedurally guaranteeing the true expression of intentions of investors in making investment decisions, and it is also a system in the financial market where "the seller is responsible and the buyer is responsible" cornerstone. The scope of information related to financial products and the degree of fulfillment of risk disclosure obligations shall be comprehensively considered based on factors such as the characteristics of the product itself, the importance of information, and the degree of influence of information on investor decision-making. In this case:

First of all, the valuation method adopted by the asset management products involved in the case is the amortized cost method, which determines that it cannot reflect the risk fluctuations of the products in a timely manner. Moreover, this case is a closed-end private equity asset management product that is opened on a regular basis, and it is impossible for investors to exit at any time and stop losses if they find the risk after entering; in this context, before the contract is signed, it is particularly important whether the important information related to risk disclosure of the product itself is disclosed . Secondly, the credit rating and market value of the "16 Shenxin 01 Bond" held by the asset management products involved in the case have dropped significantly in a short period of time of more than a month, and they are facing a market situation where trading is suspended or there is no buying. risk has a significant impact. Finally, for new investors such as Huang Moumou during the opening period, because the information disclosure report during the duration of the previous asset management products is not open to them, so before signing a contract and deciding to invest in the opening period, the manager has no information about the product. The publicly disclosed information and notification contents are the main judgment basis for investors to decide whether to invest. To sum up, the court of second instance held that Changjiang Asset Management Company should fulfill its contractual obligations, inform Huang and other potential investors that some of the bonds held by the products involved in the case do not conform to the credit rating agreed in the asset management contract, and fully reveal product risks to ensure investment express their true intentions. Therefore, the court of second instance finally rejected the appeal of Changjiang Asset Management and upheld the original judgment.