The first batch of 50 private equity firms in China have won licenses from Asset Management Association of China (AMAC), according to an announcement on AMAC’s website.
AMAC is a group set up by the China Securities Regulatory Commission (CSRC).
The licenses are being distributed to non-publicly offered funds that invest privately raised capital in public companies, and private equity funds investing in private companies.
A total of 17 PE firms including CDH Investments, Gopher Assets, and CITIC Capital have obtained the licenses to operate private equity funds.
This implies that domestic private equity firms in China now have the same legal status as mutual funds. Both are supervised by the CSRC.
AMAC issued rules to regulate domestic private equity firms’ record management, operational standards and information disclosure in January.
According to the rules, domestic private equity managers are required to register with the AMAC by the end of April, or will be regarded as fundraising illegally.