Legal Trends in the Private Equity Industry (February 2025/Issue 85)

2025-04-11 00:00:00 · Lawbridge

State assets Fund research center legal service dynamics

Yang Chunbao's legal team was entrusted by an environmental technology company in Dongguan, Guangdong, to provide legal services for its equity financing;

Yang Chunbao's legal team was entrusted by an Inner Mongolia investment group to provide due diligence, agreement negotiation and other legal services for its acquisition of a hotel project in Shanghai.

Dacheng Shanghai became a qualified supplier of Pudong Innovation Investment Group;

Lawyer Yang Chunbao was invited to participate in the round table discussion of "Fiduciary Duty and Corporate Governance of Directors and Supervisors" at Chambers High-quality Forum Shanghai Station, and analyzed the relief paths of minority shareholders for directors violating fiduciary duty under both Chinese and foreign and old and new company laws with two agency cases;

Lawyer Yang Chunbao was invited by Hebei Securities and Futures Industry Association to conduct practical training on gambling law for its members;

At the invitation of Pudong Innovation Investment Group, Lawyer Yang Chunbao conducted internal training for it with the theme of "State-owned fund Investment Focusing on compliance matters and investment terms Design";

Lawyer Yang Chunbao won the annual Client Selection Lawyer of the 2025 "Famous Law Hall General Recommended Chinese Lawyers List", and the listed business field is "asset management";

The Law Bridge Private Meeting was successfully held, the theme of this issue is "Attack and defense of gambling buyback".

Various announcements and notices of the association

On March 12, 2025, the Asset Management Association of China (the "Association") issued the Notice on the Release of the Credit Information Report of Private Fund Managers in the Fourth Quarter of 2024, stating that, as of March 3, 2025, private fund managers who become members of the Association before the fourth quarter of 2024, Members' credit information reports for the fourth quarter of 2024 are available through the AMBERS system. Each member of the private fund manager shall ensure that the information submitted is true, accurate and complete. If you have any questions, you can apply to the association within one month after receiving the report.

On March 14, 2025, the Association issued an announcement that four private fund managers such as Zhongrong Dehui (Beijing) Fund Management Co., Ltd. reached the cancellation conditions of the publicity period of one month and did not take the initiative to contact the association and complete the status report, and the Association will cancel the registration of private fund managers of the four institutions.

On March 14, 2025, the Association issued an announcement saying that Shenzhen Qianhai Juronghui Capital Investment Management Co., Ltd. had abnormal business conditions and failed to submit a special legal opinion meeting the requirements within 3 months after the written notice of the association was issued, and the Association would cancel its registration as a private fund manager.

On March 24, 2025, the Association issued a "Solemn statement" saying that there were lawless elements who issued the CSRC administrative penalty announcement in the name of the association, or issued documents of penalties or restrictive measures in the name of the association. The association strongly condemned, and asked industry institutions and investors to raise awareness, pay attention to discrimination, beware of being cheated. If illegal acts are found, evidence should be collected and stored in a timely manner and reported immediately. The association urges relevant institutions and individuals to immediately stop illegal acts and reserves the right to pursue their legal responsibilities.

On March 28, 2025, the Association issued an announcement, requiring the 31 private equity fund managers who could not get effective contact with Guangzhou Dazhi Private Equity Fund Management Co., Ltd. and other associations to submit a situation report through the AMBERS system within 5 working days from the date of the announcement. If it is not completed within the time limit, the association will identify it as lost contact. If it is not completed within one month after the publicity, the Association will cancel the registration of its private fund manager.

Institute disciplinary action

omit

Legal and regulatory dynamics

Guiding Opinions of The General Office of the State Council on Doing a good job in the "Five Major Articles" of Finance (GuoChangfa (2025) No. 8)

On March 2, 2025, The General Office of the State Council issued the "Five Major Articles" Guiding Opinions on Doing a good job in Finance, referring to many aspects of private equity and venture capital funds, including:

(1) Private equity investment institutions focus on the high-quality development of the service economy to accelerate the transformation, effectively improve investment capacity, and expand direct financing channels;

(2) Deepen the misplaced development of the multi-level equity market, and improve the inclusiveness of new industries, new business forms and new technologies. Establish and improve the "green channel" mechanism for listing financing, mergers and acquisitions and reorganization, and increase support for equity financing of science and technology enterprises that break through key core technologies;

(3) Optimize the system of "raising, investing, managing and withdrawing" of private equity and venture capital funds, and guide social capital to increase investment layout in the key areas of the "five major articles" of finance;

(4) Steadily expand the pilot scope of foreign exchange management policies for cross-border private equity investment funds;

(5) Optimize the financing environment for smes based on science and technology, develop equity investment, venture capital and angel investment, strengthen patient capital, and support the cultivation and development of leading technology enterprises, unicorn enterprises and specialized new smes;

(6) Improve the national integrated financing credit service platform network, accelerate the construction of the national small, medium and micro enterprises capital flow credit information sharing platform, venture investment and innovation and entrepreneurship project docking platform, explore the expansion of movable financing unified registration and publicity system application scope.

President Wu Qing answers questions at a press conference on the theme of economy of the Third Session of the 14th National People's Congress

On March 6, 2025, Wu Qing, Chairman of the China Securities Regulatory Commission, pointed out at the economic main body press conference of the Third session of the 14th National People's Congress: We will continue to improve the regulatory system and rules for private equity and venture capital funds, focus on optimizing the withdrawal of the "reverse linkage" policy, promoting the pilot of physical allocation of shares to investors, improving the fund share transfer system, supporting the development of private equity secondary market funds (S funds) and merger and acquisition funds, and further open up diversified exit channels, and jointly promote the improvement of assessment and fault tolerance mechanisms with relevant parties. We will support multiple channels to expand funding sources and promote a virtuous cycle of "fundraising, investment, management and withdrawal".

Nanshan District Support innovation and entrepreneurship "Six One" action Plan

Recently, Shenzhen Nanshan District officially issued the Nanshan District to support innovation and entrepreneurship "six one" action plan, Nanshan District will set up a total scale of 500 million yuan of strategic direct investment special seed funds and angel funds, Leading investment support will be given to start-ups in strategic emerging industries and future industries that are supported and developed by Nanshan District, such as artificial intelligence, robotics, biomedicine, and low-altitude economy, with a maximum loss of 100% allowed for a single project within the fund.

Typical case

Omit

Fund

law

Private Equity

Lawbridge

Read The Whole Passage