China imposed new rules to restrict venture capital activities Tuesday, Bloomberg reported. Beginning March 1, venture capital funds will be banned from stocks, futures and warrants as well as real estate and insurance. They may be deposited in banks, invested in government bonds and other fixed-income securities. Venture capital funds will be banned from investing more than 20% of their assets in one company under new rules. Additionally, venture funds should have registered capital of at least US$3.7 million, with no more than 200 investors contributing below RMB1 million per investor.
You must log in to post a comment.