| Guangdong News：How could domestic private fund go offshore? Compliance is the foundation of the industry. |
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2017
03-22
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to List With the explosive growth of the domestic private fund industry, 2016 was also seen as the tightest-regulated year. The Asset Management Association of China (AMAC) successively issued a series of new rules to regulate the private fund industry from the source in terms of filing, internal control and information disclosure. According to figures from AMAC, compared to the end of 2015, the number of private fund managers dropped by 26.79% in 2016, while the number and the size of paid-up capital of private funds had an increase of 102% and 111%, respectively.
Li Wei, Executive Vice President of OP Investment Management, commented, “Domestic private funds are not able to launch products within a few weeks as in the past due to the tight regulation nowadays. Thus, some investors have shifted their attention to overseas market as it’s widely known that the overseas regulation is more comprehensive and independent, and the capital is safer and more transparent.” He also pointed out that only if you have relative advantages in some fields can you consider to go offshore. It depends on whether your resource endowment support you to make investment in overseas markets. “It is practicable for funds who have already had a large amount of capital overseas while seeking stable returns. Another scenario is that you’ve focused on a specific industry. You could integrate your existing accounts and make investment in the same market,” Li Wei said.
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