Chinese PE/VC funds slam proposed changes in rules

Chinese PE/VC funds slam proposed changes in rules

FILE PHOTO: The Chinese national flag is seen in front of the financial district Central on the Chinese National Day in Hong Kong, China October 1, 2022. REUTERS/Tyrone Siu/File Photo

China’s proposal to drastically raise the bar for investing in private equity (PE) and venture capital (VC) funds is facing backlash from industry players concerned it could wipe out small funds and choke financing to startups struggling in a weak economy.