Fake China PE funds out to trap unwary investors

Although China private equity funds are drawing increasing interest from domestic and also overseas institutional investors, several increasingly appear to be vehicles for shadow banking. A phenomenon of what is called “fake private equity” funds have gradually become more evident in the country. While these vehicles can take many forms, Yan Qingmin, vice chairman of the China Securities and Regulatory Commission (CSRC), described many of them as “fake funds, real debt” at a priva…