Legal Trends in the Private Equity Industry (February 2025/Issue 84)
Legal Service Trends of State owned Assets and Funds Research Center
Lawyer Yang Chunbao's team provided specialized legal services for post-investment management of a unicorn project invested by a private equity fund of a central enterprise.
Lawyer Yang Chunbao's team represented a private equity fund investor in arbitrations in Beijing and Shenzhen.
Yang Chunbao’s legal team assisted a private equity fund manager in completing a compliance check on the manager and the funds it manages.
Various announcements and notices of the association
On February 14, 2025, the Asset Management Association of China (the “Association”) issued a notice requiring 20 private fund managers that the Association could not effectively contact, including Beijing Zhaoyu Investment Management Co., Ltd., to submit a situation report through the AMBERS system. If the report is not completed within the deadline, the Association will deem it as a loss of contact. If the report is still not completed within one month after the announcement, the Association will cancel its private fund manager registration.
Legal and Regulatory Developments
The Ministry of Commerce and the National Development and Reform Commission
issued the 2025 Action Plan to Stabilize Foreign Investment.
On February 17, 2025, the Ministry of Commerce and the National Development and Reform Commission issued the "2025 Action Plan for Stabilizing Foreign Investment" (hereinafter referred to as the "Plan"). The Plan proposes 20 measures from four aspects: orderly expanding independent opening-up, improving the level of investment promotion, enhancing the effectiveness of open platforms, and increasing service guarantees, including encouraging foreign investment in equity investment in China, increasing support for foreign-invested enterprises to reinvest in China, expanding the scope of industries encouraged for foreign investment, canceling restrictions on foreign-invested companies using domestic loans, encouraging multinational companies to invest in and establish investment companies, and facilitating foreign investors to implement mergers and acquisitions in China.
The China Securities Regulatory Commission issued the implementation opinions on the “Five Major Articles” on how to do a good job in the capital market
On February 7, 2025, the China Securities Regulatory Commission issued the "Implementation Opinions on the Capital Market Doing a Good Job in the Five Major Financial Articles", proposing to guide private equity venture capital funds to invest early, invest in small companies, invest in the long term, and invest in hard technology; implement the policy arrangements of the General Office of the State Council on promoting the high-quality development of venture capital, smooth the diversified exit channels of private equity venture capital funds, and promote a virtuous cycle of "fund raising, investment, management and exit"; optimize the "reverse linkage" policy for the exit of private equity venture capital funds; promote the pilot program of physical distribution of stocks by private equity venture capital funds to investors; study and improve the system and mechanism for the transfer of private equity venture capital fund shares; support the development of private equity secondary market funds (S funds); support the pilot program of direct equity investment by financial asset investment companies; broaden the sources of funds for private equity venture capital funds through multiple channels, attract more social capital participation, and actively develop patient capital; encourage the development of green private equity venture capital funds, etc.
The China Securities Regulatory Commission and the Supreme People's Procuratorate
jointly held a press conference
On February 21, 2025, the China Securities Regulatory Commission and the Supreme People's Procuratorate jointly held a press conference. Ge Xiaoyan, member of the Party Leadership Group and Deputy Procurator General of the Supreme People's Procuratorate, mentioned that from 2022 to 2024, the national procuratorate prosecuted 598 cases of private equity fund crimes involving 2,805 people. The Supreme People's Procuratorate supervised three batches of 24 major private equity fund crime cases, 16 of which have been prosecuted, and clearly held criminal responsibility for illegal fundraising in the name of private equity, misappropriation and embezzlement of private equity fund property, insider trading and market manipulation using private equity funds, etc., to promote the standardized and healthy development of the industry and provide legal protection for private equity funds to fully play their role in serving the real economy.
Guangzhou Development Zone (Huangpu District) Technological Innovation
Venture Capital Fund Loss Tolerance Rate Reaches 100%
Guangzhou Development Zone (Huangpu District) Technological Innovation
Venture Capital Fund Loss Tolerance Rate Reaches 100%
Industry News
According to statistics from Private Equity Connect under Qingke Venture, there were 320 fundraising, investment, listing and M&A events between February 14, 2024 and February 27, 2025, involving a total amount of RMB 107.444 billion. Among them: Fundraising A total of 1 new equity investment fund manager was registered, 5 were deregistered, and the number of newly registered funds was 155, with a total scale of RMB 83.982 billion. The number of newly added equity investment fund managers so far this year is 11. The number of newly added equity investment registered funds so far this year is 631, with a total scale of RMB 555.875 billion. Investment 111 (88 disclosed amounts, total amount of RMB 8.153 billion); M&A 51 (total amount of RMB 15.166 billion); Listing 3 (total financing amount of RMB 143 million).
Fundraising
A total of 1 new equity investment fund manager was registered, 5 were deregistered, and the number of newly registered funds was 155, with a total scale of RMB 83.982 billion. The number of newly added equity investment fund managers so far this year is 11. The number of newly added equity investment registered funds so far this year is 631, with a total scale of RMB 555.875 billion.
Investment
111 (88 disclosed amounts, total amount of RMB 8.153 billion);
MA
51 (total amount of RMB 15.166 billion);
Listi
3 (total financing amount of RMB 143 million).
First, please LoginComment After ~