On October 25, 2019, the National Development and Reform Commission (the “NDRC”) promulgated the Circular on Matters Concerning Further Clarifying the Regulation of Investment of Financial Institution Asset Management Products in Venture Capital Funds and Government-funded Industry Funds (the “Rules”), jointly with the People’s Bank of China, the Ministry of Finance, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange. The Rules are a regulatory supplement to Article 2 of the Guiding Opinions on Regulating the Asset Management Business of Financial Institutions (the “Guiding Opinions”), which provide that “the provisions with regard to venture capital funds and government-funded industry funds shall be developed separately.” We briefly summarize and analyze the key provisions of the Rules for your reference in combination with the Press Conference Q&A Regarding Circular on Matters Concerning Further Clarifying the Regulation of Investment of Financial Institution Asset Management Products in Venture Capital Funds and Government-funded Industry Funds (the “Q&A”).
