Chinese private funds have been losing their licenses at a faster pace this year than in 2022 as regulators tighten scrutiny on the industry to curb irregularities.
The number of private fund deregistrations, both voluntary and forced, reached 2,035 during the first seven months of the year, twice the number in the same period last year, according to the Asset Management Association of China. Private funds in China include hedge funds, private equity and venture capital funds.
More than 1,400 funds were seen deregistered by AMAC in Jan, due to the rules released last January on private funds’ operational irregularities including incorrect or incomplete information disclosure and not having fund products under management for over a year.