On October 27, China's first risk assessment system for private fund raising was issued in Beijing Fund Town.

Many important people attended this expert review meeting, including Hao Ruyu—member of the Standing Committee of the 11th and 12th National People's Congress, deputy director of the Finance and Economics Committee and chief expert of the National Tax Law Research Base of Beijing Philosophy and Social Sciences, Li Jian—an expert who enjoys special government subsidies from the State Council, Professor of the School of Finance of the Central University of Finance and Economics and executive director of the China Society of Market Economy, Li Xiaohui—Professor of the Audit Department of School of Accountancy of the Central University of Finance and Economics, consultant expert on China Internal Control of the Ministry of Finance, member of the Chinese Certified Public Accountants Committee and member of the China Internal Auditing Standards Development Committee, Qu Qiang—Professor of the School of Finance of Renmin University of China, director of the China Financial Policy Research Center, a key research base of the Ministry of Education and director of the China Society for Finance and Banking, Liang Qinghua—Professor of Law School of the University of International Business and Economics and an arbitrator of China International Economic and Trade Arbitration Commission, Wu Junwen, executive of custody department of CITIC Securities, Li Shoushuang, senior partner of Beijing Dentons Law Offices, and Hu Bo, associate professor of the School of Finance of Renmin University of China.

Review Comments: The establishment of the risk assessment system for private fund raising in China plays an important role and exerts crucial significance in establishing a comprehensive and accurate monitoring system for the private fund raising industry and in promoting the steady development of the industry. This assessment system is complete and has comprehensive dimension design, reasonable index which are both scientific and operational. It fills the gap of risk management assessment standard in private fund raising industry and is innovative and practical.

The news conference was attended by the expert review team and relevant responsible person from Tianchi Juntai Law Offices, Merits & Tree Law Offices, SG&CO Layers, KPMG, PricewaterhouseCoopers, CITIC Securities, China Securities Co., Ltd, Bank of Beijing, Industrial Bank Co., Ltd. and Beijing Fund Town.

Xinhua News Agency, People's Daily, China Central Television, China Securities Journal, China Fund News, Beijing Television, Shanghai Securities News and other media carried out on-site interviews and reports, which were reprinted by hundreds of media at home and abroad. Once again, Beijing Fund Town has become the focus of attention from all walks of life.

Xinhua News Agency

The Risk Assessment System for Private Fund Raising Released in Beijing

Xinhua Finance, Beijing, October 29 (Reporter Gai Boming and Li Ben) Risk Assessment System for China's Private Fund Raising was Released in Beijing. Beijing Fund Town organized relevant experts, scholars and professional institutions to jointly compile this system. With several rounds of research, systematic demonstration and professional review, this system was produced, aiming to promote standardization, informatization and scientization of private fund pre-audit and in-process monitoring. At present, China's private fund-raising management level, risk awareness and the prevention and control capability still need to be improved.

As introduced, the risk assessment system for China's private fund raising, combined the risk characteristics of private fund, set up 10 professional dimensions, including investors, related parties, management teams, operating conditions, operational normalization, fund product structure, investment management, past performance and credit records and so on. The risk assessment system for private fund raising includes 10 first-class indexes, 51 second-class indexes, 169 third-class indexes and 348 scoring items, which conducts a comprehensive "scan" on private equity.

CCTV Financial Channel

China Securities Regulatory Commission (CSRC): Clearing Counterfeit Private Fund Raising, Strong Supervision Becomes Normal

 CCTV reporters interviewed experts on the spot and gave in-depth reports on the industry background and significance of the release of the risk assessment system for China's private fund raising:

Recently, Yi Huiman, Chairman of the CSRC said at a forum on private equity and venture capital fund that efforts should be made to revise the regulatory measures for private fund raising, promote the introduction of regulations on private fund raising, and gradually clear "counterfeit private fund raising".

"At present, the scale of private fund raising development should be said to be still very large, and its role cannot be replaced. However, there are still many irregularities in the operation and management, including the whole process of fund raising and using." Li Jian, head of finance department of the Central University of Finance and Economics, said.

In recent years, the development of the private fund raising industry is mixed with good and evil. Some institutions promise investors to protect their capital and profits, but illegal absorption of public deposits in the name of private fund raising occurs from time to time.  People in the industry said that at present, regulators and industry self-discipline organizations have taken measures to fight against risks, but industry standards are relatively crude and unscientific. Each service agency has its own so-called "white list", lacking professional and unified standards. The private fund raising industry urgently needs to establish a complete risk assessment system.

"It is hoped that a relatively complete, systematic and scientific system can be set up. At the same time, it is necessary to consider its operability and provide a risk assessment on the managers of private fund raising and on the private fund products they manage. This is really conducive to the realization of supporting successful enterprises and restricting unsuccessful ones in the fund industry.” Hu Bo, associate professor of the School of Finance of Renmin University of China, said.

BTV Beijing news

The Risk Assessment System for China's Private Fund Raising was Released.

On the 27th, China's first risk assessment system for private fund raising was released in Beijing Fund Town. As introduced, based on the practice of serving more than 1,200 private fund-raising institutions, Beijing Fund Town has compiled the risk assessment system for China’s private fund raising based on its own risk prevention and control service standard system, with conducting in-depth analysis of the risk points in all aspects of the whole process of "raising, investing, managing and withdrawing" of private fund-raising institutions in accordance with relevant laws, regulations and industry standards of private fund raising.

"Such a relatively systematic and scientific standard for risk assessment can be applied to serve the risk assessment of the entire industry," Hu Bo said. The release of China's first risk assessment system for private fund raising will promote standardization, informatization and scientization of the pre-audit and in-process monitoring of private fund raising.

In the future, the risk assessment system for China's private fund raising will, matching the cutting-edge scientific and technological means such as cloud computing, big data, artificial intelligence and block chain, capture data from fund institutions dynamically and in multiple dimensions to paint a picture of the legitimacy and compliance of its operations, so as to help the private fund-raising industry to establish a comprehensive, dynamic, accurate and penetrating monitoring system, improve China's credit system for private fund raising marketization, promote the sound development of the private fund raising industry and better serve the real economy.