Industry News | The CSRC agreed in principle to carry out the first pilot project of the physical distribution of shares by private equity venture capital funds to investors

In order to broaden the exit channels of private equity funds and venture capital funds (hereinafter referred to as private equity venture capital funds), promote a virtuous cycle of investment-exit-reinvestment, and smooth the impact of the exit of private equity venture capital funds on the secondary market, in July this year, the China Securities Regulatory The meeting launched the pilot work of private equity venture capital funds to distribute stocks in kind to investors. Since the launch of the pilot, industry organizations have responded positively. Industry bodies said that private equity venture capital funds allocate shares in kind to investors, which is conducive to taking into account the differentiated needs of investors to reduce holdings, avoid market fluctuations caused by centralized holding reduction, enrich private equity venture capital funds exit channels, and further optimize private equity venture capital. The fund exits the environment and promotes the long-term healthy development of the industry.

A few days ago, the China Securities Regulatory Commission has approved in principle the application of Shanghai Linli Investment Partnership (Limited Partnership) for the pilot application of stock allocation in kind. The applicant will, in accordance with relevant laws and regulations and the requirements of the CSRC on the pilot program of private equity fund allocation of stocks in kind, perform corresponding procedures and information disclosure obligations, and allocate stocks to investors in a timely manner. Other eligible private equity venture capital funds are also in the process of actively and orderly advancing the pilot applications for physical distribution of stocks.

In the next step, the China Securities Regulatory Commission will promote the orderly development of the pilot work of physical distribution of stocks by private equity venture capital funds, summarize and evaluate the pilot situation in a timely manner, gradually expand the scope of the pilot, continue to improve the exit mechanism of private equity venture capital funds, and give better play to private equity venture capital funds. The supporting role of investment funds in the real economy and innovation and entrepreneurship.

The above content comes from the official website of the China Securities Regulatory Commission