CSRC set to oversee private funds in public securities

Privately raised funds for investment in publicly issued securities will be regulated by the China Securities Regulatory Commission, which will strive to control financial risks and protect investors' interests, the top regulator announced on Wednesday.

So-called "sunshine private fund" management companies - financial institutions that invest private funds into the stock market, as well as private equity and venture capital companies - should register with the Asset Management Association of China if the total investment value in publicly issued securities exceeds 100 million yuan ($16 million), according to a CSRC policy draft.

Publicly issued securities include shares, bonds and derivatives under CSRC jurisdiction.