China to further regulate private investment funds

BEIJING - Chinese authorities are soliciting public opinion on a provisional regulation that aims to further regulate activities involving private investment funds.

The regulation focuses on risk prevention and protection of investor rights during fund raising and investment operations, the Legal Affairs Office of the State Council, China's cabinet, said Wednesday in a note regarding the soliciting of opinions.

It is necessary to issue such a regulation given the irregularities arising in the fast-developing industry in recent years, according to the office.

The regulation states that fund managers and custodians should join the industry association to submit information on fund operations and that the association should establish a mechanism to handle investors' complaints.

The public can provide feedback on the provisional regulation by visiting the office's website before Sept 30, 2017.