Even as it begins to loosen its grip on foreign hedge funds, China is seeking tighter controls on its private-equity industry.
The country's National Development and Reform Commission yesterday pushed local governments—again—to register all p.e. funds with more than 500 million yuan (US$80.5 million) in assets by the end of June. An October deadline, set by the NDRC in May, failed to do the trick; the NDRC said yesterday that the process had stalled in some areas of the country.
The new push to have p.e. funds register with local governments come amidst an increase in p.e. scams, according to The Wall Street Journal. It also comes amidst a jurisdictional battle, as the NDRC seeks to consolidate its oversight of private equity against the machinations of the Ministry of Commerce and China Securities Regulatory Commission.
China has said in the past that p.e. funds should register—but has stopped short of requiring it.