This article is from the public number:Economic Observer (ID: eeo-com-cn), author: Hong Xiaotang, from the title figure: vision China

Currently, the regulatory authorities are conducting a comprehensive investigation of privately-registered areas.

The Economic Observer Online reporter learned from the proximity of the supervisors that the Shanghai Securities Regulatory Commission of the China Securities Regulatory Commission and the Financial Work Bureau of the Pudong New Area are jointly working on a private equity institution known as the “Private Equity” Shanghai Pudong New Area. Investigated and issued the “Notice on Launching the 2019 Pudong New Area Private Equity Fund Managers’ Comprehensive Investigation Work” (hereinafter referred to as “Notice”).

Questionnaire

According to people familiar with the matter, the comprehensive investigation is related to the overall deployment of Shanghai to prevent and resolve major financial risks.

According to the “Notice”, this investigation is in accordance with the requirements of “Shanghai Municipality to implement a plan to prevent and resolve major financial risks and tough battles”, to further supervise the private equity fund managers in the jurisdiction to regulate the operation, protect the legitimate rights and interests of investors, and prevent major financial risk.

The Notice requires that the private equity fund manager who is registered in the Pudong New Area and has registered with the China Securities Investment Fund Association shall submit the Private Equity Fund Manager Questionnaire within 5 working days from the date of receipt of the notice. , “Private Fund Questionnaire”, “Commitment Letter” and other documents.

The reporter learned from many parties that a number of private placement agencies that have registered in Pudong New Area have indicated that they have received the above documents and are in the process of completing the application. The investigation is entrusted by the regulatory department to Beijing Junzejun Law Firm. Responsible for specific implementation.

People from a large private equity institution in Pudong said, “I just received the notice and the relevant colleagues are preparing materials as required.”

In this issue of the Private Equity Fund Manager Questionnaire, the reporter found that the questionnaire is mainly related to whether the actual information of the manager and the information disclosed by the China Foundation are consistently related, Among them, the name of the manager, registered capital, paid-in capital and proportion, senior management information, main business income, net profit, and the integrity and public opinion information of the past three years were investigated in more detail.

The Private Equity Questionnaire mainly asks for product details, including basic information such as the date of product filing, the number of natural person investors and institutional investors, and the amount of investment. In addition, the fund’s net assets, grading leverage ratio, Whether there are liquidation difficulties, whether there is a pool of funds, whether there are management transactions, related party transactions and the amount of compliance operations are fully investigated.

“Reporting at these private placementsAfter signing the letter of commitment, the regulatory authorities may conduct random checks on some private placements. If the situation is found to be untrue, it will definitely take corresponding regulatory measures. “A person close to the regulatory level said.

Pseudo-Private Clearance

In fact, the Pudong New Area has been known as a domestic private equity fund gathering town in recent years.

According to the statistics of the fund industry association, as of the end of September 2019, there were 4,729 private placement institutions in Shanghai, 158 more than the second place in Shenzhen, with 22,117 managed fund products, which were 8,094 more than Shenzhen and Beijing. 8,294 only.

In addition, a 2018 data shows that there are more than 66 private equity institutions in Shanghai with over 5 billion yuan in investment securities, and 42 of the 66 companies have taken root in Pudong.

And the Pudong New Area’s ability to become a gathering place for most private equity firms is related to the policy tilt of private equity institutions in the region a few years ago.

In 2014, Pudong New Area issued the “Pudong New Area Promotion of Private Equity Investment Fund Industry Development Financial Support Measures and Implementation Rules”, and various measures to promote and help private equity institutions take root in Pudong, including fund scale settlement incentives, purchase of self-use office Land subsidies, senior housing subsidies, talent awards, etc. In addition, it also provides a multi-party supporting facilities such as a private placement service platform and a physical gathering space to help private placements settle in Pudong.

However, the increase in the number of private equity firms also means an increase in regulatory difficulty.

The reporter learned from the above-mentioned close supervisors that the comprehensive investigation of private placements this time was mainly aimed at the removal of pseudo-private securities with illegal fund-raising, financing products, related transactions and other illegal activities.

“This is only the first step. After the questionnaire survey and comprehensive investigation, the private placement institutions that have violated laws and regulations will be listed in the abnormal organization list, blacklisted, registered by the cancellation manager, and unable to handle the management. Changes in matters and fund filing, the inability to handle industrial and commercial changes, the inability to lease related office buildings, and the suspension of financial support qualifications, etc.,” said the regulator.

A small and medium-sized private equity manager in Pudong told reporters that “we have received the questionnaire. The company has some flaws in the details. It is reporting and organizing the meeting to make relevant adjustments, and the active rectification efforts meet the requirements.”

The aforementioned large-scale private equity institutions said that the investigation did not have any impact on the company itself, but there are indeed some private placements with irregularities that may face the fate of being cleared. This seems to be a protection for the entire private equity industry and is conducive to the healthy development of the industry.

This article is from the public number:Economic Observer (ID: eeo-com-cn), Author: Hong Xiaotang