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New rules on reduction of venture capital fund shares


ATF – The China Securities Regulatory Commission (CSRC) has announced special regulations on the reduction of shares held by shareholders in Venture Capital funds of listed companies.

These will come into effect on March 31.

The main changes are:

  • simplifying the applicable standard of the reverse pegging policy;
  • abolishing the lock-up period restriction of the transferee under the block transaction mode;
  • abolishing the restriction on the reduction of venture capital funds with an investment period of more than five years;
  • rationally adjust the calculation method of the investment period;
  • allow private equity funds to refer to the application of reverse pegging policy and clarify the legal liability of fraudulent application policy.

Chris Gill

With over 30 years reporting on China, Gill offers a daily digest of what is happening in the PRC.

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