State Council: Private equity funds are strictly prohibited from engaging in illegal lending, "equity disguised as debt," and other similar activities.

Odaily Odaily that the General Office of the State Council has issued guiding opinions on strengthening supervision, preventing risks, and promoting the high-quality development of private equity investment funds. The opinions emphasize adhering to a goal-oriented and problem-oriented approach, addressing issues such as the need for improvement in the private equity fund industry's entry mechanism, inadequate supervision, unsound systems, insufficient inter-ministerial and central-local coordination, inadequate fulfillment of investor responsibilities by some government investment funds and state-owned enterprise investment funds, and some private equity funds becoming tools for illegal activities, new forms of corruption, and hidden corruption. The opinions aim to build a robust regulatory system and long-term mechanism to prevent risks, promoting the industry's development through standardization and improvement. Adhering to its functional positioning, coordinating the overall layout, optimizing new additions and revitalizing existing assets, supporting the superior and restricting the inferior, improving quality and efficiency, and strictly prohibiting private equity funds from engaging in illegal lending, "equity disguised as debt," and other such activities. Adhering to categorized supervision, implementing "one policy per category" supervision based on different dimensions such as the investing entity and product type. Upholding the principle of regulating both legal and illegal activities, strictly supervising legal institutions, resolutely eliminating illegal institutions, and severely cracking down on illegal activities. Promote the revision of the Securities Investment Fund Law. Promote the issuance of judicial documents for handling criminal cases involving private equity funds. Formulate rules for the supervision, information disclosure, fundraising, and mandatory custody of private equity fund managers. Issue regulations to standardize "betting agreements" in private equity funds. Comprehensively construct a private equity fund regulatory system with administrative supervision as the mainstay and self-regulation as a supplement.