State Council Office: No using private equity funds to improperly raise debt or dispose of problem companies to prevent the formation of new risk points.

The General Office of the State Council issued guiding opinions on strengthening supervision, preventing risks, and promoting the high-quality development of private equity investment funds. It mentions that the disposal of risks for private fund managers will be organized and implemented by the provincial and municipal governments in conjunction with the China Securities Regulatory Commission and other relevant departments in their registered locations. The provincial and municipal governments in the registered locations will promptly clarify the situation, formulate risk resolution and disposal plans based on marketization and rule of law principles, and carry out tasks such as asset recovery, asset verification, and distribution refund to avoid relying on public resources for risk resolution and disposal. Local risk resolution mechanisms will be used to resolve and dispose of risks related to private equity funds. The China Securities Regulatory Commission and its branches will actively cooperate with local governments in carrying out risk resolution and disposal work and handle penalties effectively. In cases where the same actual controller controls multiple private equity fund managers across regions and risks arise, the provincial and municipal governments in the registered locations of the headquarters enterprise, the core enterprise's corporate income tax payment location, and the individual income tax payment location of senior enterprise management personnel will be responsible in order. Using private equity funds for improper debt financing or disposing of problematic enterprises is prohibited to prevent the formation of new risk points.