NDRC Notice Regarding RMB Funds Provides Guidance on the Regulation of China’s Domestic Private Equity Industry

The National Development and Reform Commission (NDRC) of China issued a Notice on Further Regulating the Development and Filings of Equity Investment Enterprises in Pilot Areas on 31 January 2011. The Notice, which was publicly released and took effect in late February 2011, applies to funds and fund managers registered via certain pilot programs in jurisdictions such as Beijing, Tianjin and Shanghai. This alert from Weil summarizes the main provisions of the Notice and addresses some of the outstanding questions that remain with respect to implementation of the Notice.