During the past couple of months, the Asset Management Association of China (“AMAC”) has issued a series of administrative measures and self-disciplinary documents (the ”Rules”) on private funds, which have attracted great attention from the private equity (“PE”) industry. While the Rules aim to strengthen the regulation of the private fund market as a whole, the PE industry seems to have been particularly adversely impacted by some requirements thereunder (including, among others, the requirement for the professional qualification for senior executives of all fund managers, the time limit to register the first fund product, the scope and frequency of mandatory disclosures, and the applicability of legal opinions). Some clarifications about the Rules especially on how certain newly proposed measures under the Rules should be interpreted and implemented appear to be needed. In this connection, the China Venture Capital and Private Equity Association (“CVCA”), a leading industry association with nearly 100 active PE/VC members and over US$700 billion of fund assets under management, initiated a consultation and discussion session with AMAC on the Rules, during which the senior AMAC administrators and representatives from CVCA had a candid and effective communication on how to interpret and implement the Rules in light of the special characteristics of PE industry in order to achieve the legitimate policy goals effectively.

As an industry expert, Han Yi was invited by CVCA’s board of governors to participate in the whole process of this liaison project and has been actively engaged in providing legal analysis and advice to CVCA’s governors and secretaries, assisting with preparation and revisions of the relevant CVCA position paper, and raising questions and proposals as a CVCA representative member as well as a special counsel to the Association. The meeting discussion provided a good opportunity to facilitate direct communications and mutual understanding between regulators and the major market players of the industry, and will have a constructive influence on an improved regulatory environment for the PE industry. Han Yi is honored to have been involved in this process to make its fair contributions to the healthy development of China’s PE industry.