Walter Hutchens’ Blog

The CSRC has revised and reissued its regulations on fund management companies (FMCs) and their executives as reported here in Chinese.

The rules continue to prohibit natural persons from being shareholders in an FMC. Remembering this prohibition, I once mistakenly opined that Fang Fenglei could not be a holder of shares in a joint venture investment bank, but such a venture is of course not an FMC, and the rules are different for foreign invested securities companies (FI-SCs, as opposed to FI-FMCs). I have since written a good bit on the Fang Fenglei-Goldman Sachs transaction, which has many surprising features.

These new rules are:

证券投资基金管理公司管理办法 or Zhengquan touzi jijin guanli gongsi guanli banfa, and

证券投资基金行业高级管理人员任职管理办法 or Zhengquan touzi jijin hangye gaoji guanli renyuan renqi guanli banfa.