Source: CCTV.com

03-28-2008 10:49

The Chinese Securities Regulatory Commission has announced new rules for qualified securities companies that want to launch a direct investment fund.

The Chinese Securities Regulatory Commission has announced new rules for qualified securities companies that want to launch a direct investment fund.

The pilot program allows securities companies to use their own capital to invest in private companies to generate profits.

The new rules require securities companies to have a net capital of no less than 2 billion yuan.

They should also have a good risk management system in place and a strong investment banking business, among other requirements.

The CSRC has already allowed CITIC Securities and the China International Capital Corporation to invest no more than 15 percent of their net capital to establish a subsidiary fund as part of the pilot program.

Editor:Zhang Pengfei