MoFo partners Serena Tan and Rongjing Zhao were quoted in a recent article published by Deal Street Asia, in light of the news that China introduced rules to regulate its private investment fund market in attempts to govern the rapidly maturing sector and safeguard investor interest.
According to Serena, Deputy Chair of Global Private Funds Group, "These new regulations provide better protection to LPs by imposing stricter regulations on GPs."
Although the new rules may have limited impact on global GPs investing in China using US dollars raised from overseas LPs, Rongjing was of the view that their impact on China-focused funds remains high amid a prevalence of dual-currency vehicles in the country. "Global GPs in China are actively involved in raising RMB-denominated funds from LPs based in China," Rongjing said.
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