The China Securities Regulatory Commission (CSRC) said it will close more than 2,000 private asset management firms in the country as part of China’s efforts to tighten supervision of the market.
The CSRC and the Asset Management Industry Association of China (Amac) made the pronouncement as China steps up monitoring of its Rmb5tr prviate fund raising industry due to rising fraud cases and incidents of defaults.
The CSRC and Amac, which is a self-regulatory organisation under the CSRC, have not specified when the clean-up will be completed.
Amac, however, said companies that will be taken out of the market still have the chance to make a comeback by meeting the compliance requirements.
China currently has around 25,800 registered organisations managing assets worth Rmb5tr, official figures show. – BusinessNewsAsia.com