PE, VC not to be included in investment funds law

Venture capital and private equity funds will not be brought into the regulatory fold of the draft amendment to the Law on Securities Investment Funds, the 21st Century Business Herald reported on Friday.

The newspaper quoted Wu Xiaoling, vice-chairman of the National People's Congress Financial and Economic Affairs Committee, as saying that disagreements among different regulators of VC and PE funds are the main reasons of the outcome.

A third review of the amendment will start next week by the National People's Congress Standing Committee. If passed, the law will be implemented as soon as March 2013.

A second review of the amendment in October said that new regulations on privately offered funds would be imposed. The first review was in June.