State Council: Strengthen the supervision of private equity funds and strictly control the establishment and illegal activities of government funds.

CoinFeed reported on June 5th that the General Office of the State Council issued an opinion requiring strengthened supervision of private equity investment funds, risk prevention, and promotion of high-quality development. The document proposes optimizing registration and filing rules, strictly controlling the establishment of new government investment funds (generally, no new funds should be established in counties and districts), and strictly managing the registration of terms such as "private equity fund" in names and business scopes. Regulators will refine risk assessment standards, promote differentiated supervision, increase inspections of key institutions, institutions operating in other locations, and illegal activities such as nominee shareholding and channeling, and strictly prohibit private equity funds from illegal lending and "equity disguised as debt."