Looking for the exit

China Law & Practice's Annual Review was released at the Awards Ceremony in Beijing this month. Part of the Annual Review comprises insights from leading lawyers. It also includes analysis of the most important news stories of the year. Please click here to view the Annual Review on issuu.

1. a) What have been the key legislative developments affecting the private equity market in the past 12 months?

The main legislative developments include the amendment of the Securities Investment Fund Law and the issuance of the Circular on the Division of Responsibilities for the Administration of Private Equity Funds.

• On December 28 2012, the Standing Committee of the National People's Congress amended the Securities Investment Fund Law, including the engagement in the private raising of proceeds for securities investment within the scope of revision for the first time, so as to regulate their offering and operation. The law sets forth provisions of principle for the investment operation of privately offered funds, specifies the system for the registration of fund managers, establishes a qualified investor system, requires post-offering reporting of privately offered funds as the registration procedure and prohibits the carrying out of open publicity and promotion for privately offered funds.
• On June 27 2013, the State Commission Office for Public Sector Reform issued the Circular on the Division of Responsibilities for the Administration of Private Equity Funds, specifying that the CSRC is charged with the regulation of private equity funds and the NDRC is charged with arranging for the drafting of policies and measures to promote the development of private equity funds.