China Securities Regulatory Commission allowed Brokerages to Establish Direct Investment Fund

China’s Securities Regulatory Commission announced on July 8 that the securities company could set up a direct investment company to collect institutional investors’ funds for direct investment, according to Xinhua News Agency.

Previously, direct investment of securities companies were narrowed to its own funds, due to the restrictions of net capital ratio , the direct investment companies always face the problem of insufficient money. Direct investment fund allow securities companies to raise funds for direct investment so that the funds size would be largely expanded.

According to SEC, securities firms who set up direct investment and direct investment funds should protect investors’ legitimate rights and interests. The investors of the direct investment funds are now limited to institutional investors.


Translated and edited by Peng Bo. He is now an editor of Write to him at

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