Tianjin pinches its PE rules
September 03, 2011 | BY
clpstaff &clp articlesAs one of China's preeminent fund formation hub cities, Tianjin is regarded by many industry participants as an influential barometer for other jurisdictions' private equity-related regulation. The city recently released new measures that enforce stricter supervision on a wide spectrum of fund formation, administrative and operation matters
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Since the introduction of the term “PE” into China from abroad around 2007, Rmb-denominated private equity funds (PEFs) have mushroomed in China and so have a number of cities that compete to attract such funds to their jurisdiction. Among the various PEF formation hub cities that have emerged, Tianjin stands out as one of the leading fund formation cities because of its advantage as a State Council-designated pilot city for financial innovation and its relatively flexible and efficient fund formation environment. At the same time, however, there have been a few high-profile illegal fund-raising and financial fraud cases involving PEFs formed in Tianjin in recent years.
In order to manage financial risks and combat illegal financial activities such as illegal fund-raising, further regulate PEFs and their management companies (PEMCs) and promote the healthy development of the