Regulators cast wary eye on real estate PE funds

Securities regulators have increased their scrutiny of certain private equity funds as the government moves to lessen systemic risks arising from the weakening property market.

Recent investigations involved nine PE funds in the real estate industry and more than 100 PE products with a total value exceeding 30 billion yuan ($4.8 billion), Deng Ge, a spokesman for the China Securities Regulatory Commission, said on Friday.

The main irregularities included violation of the legal cap on the number of investors in a single fund, inadequate disclosure, weak measures to address possible conflicts of interest and inadequate internal controls, Deng told a news conference.