CSRC: Strengthening the regulation of private equity funds is beneficial for promptly removing bad actors and avoiding the situation where bad money drives out good money.

The China Securities Regulatory Commission attaches great importance to the supervision of private equity funds, continues to increase efforts to crack down on illegal activities in the private equity sector, from the first quarter of 2023 to the first quarter of 2026, it has taken administrative regulatory measures against 1805 private equity fund managers and related entities, imposed administrative penalties on 97 private equity fund managers and related entities, and transferred 86 suspected criminal clues to the public security organs; the China Securities Investment Fund Industry Association has cancelled the registration of 5444 private equity fund managers. Strengthening supervision and risk prevention is not the ultimate goal, but a means to promote the high-quality development of the industry. Strengthening the supervision of private equity funds is conducive to timely removing bad actors, avoiding the situation where bad funds drive out good ones, and creating a good environment for the standardized development of the private equity fund industry; it also helps to urge private equity fund managers to fully fulfill their fiduciary duties, protect the legitimate rights and interests of investors, maintain investor confidence, and lay a foundation for the long-term standardized development of the private equity fund industry.