The China Securities Regulatory Commission (CSRC) released for public consultation on September 4 a draft of the Measures for the Supervision and Administration of Private Investment Fund Fundraising. The seven-chapter, 45-article proposal introduces tiered qualified-investor standards, including substantially higher requirements for individuals investing in funds focused on real estate project-company equity, single assets, overseas assets and over-the-counter derivatives. General individual investors would need at least two years of relevant investment experience and meet specified household asset or income tests, while investors in special-asset products would face four-year experience and higher asset thresholds. Institutional investors would need net assets of at least 10 million yuan at the end of the previous year, and every investor would face a 1 million yuan minimum investment and initial paid-in amount. The draft adopts a seller due diligence and buyer beware framework, limits fundraising to managers or qualified fund-distribution institutions, and prohibits other institutions or individuals from raising capital. It also sets requirements for prospectuses, risk disclosures, investor commitment letters, fund contracts, dedicated settlement accounts, supervisory institutions and managers’ internal controls. The proposal forms part of China’s expanding private-fund regulatory framework, following February information-disclosure rules and June’s State Council Document No. 54. China’s private funds managed 25.73 trillion yuan as of the end of July. The CSRC said it will review public feedback and revise the draft before implementation through established procedures.