CSRC outlines rules for private equity

The China Securities Regulatory Commission has issued draft legislation to allow principal investments, creating a formal framework for domestic private equity. The scheme is currently open to securities companies, and is expected to include banks and insurance companies soon. Companies meeting the CSRC’s criteria can apply for the first batch of approved statuses and participate in the schemes.

In its issued statement, the CSRC says institutions applying to the scheme should have a minimum of Rmb2 billion in net capital, a complete risk control mechanism, three years of experience...