China to tighten oversight of private investment funds

BEIJING/SHANGHAI, June 5 (Reuters): China on Friday tightened oversight of the country's 23 trillion yuan ($3.40 trillion) private fund industry, in a bid to reduce financial risks and channel money into technology innovation and emerging industries.
China's securities regulator said it would raise the bar for private fund registration, crack down on illegal fund activities and encourage long-term "patient" capital to support tech-focused venture capital investments.
"Strengthening oversight of private funds will help remove bad actors, create a sound environment for the industry ...and protect investors," the China Securities Regulatory Commission (CSRC) said in a statement.