CSRC: Strictly investigate and punish illegal activities of private equity funds by 2025 to eliminate the "bad apples".

The China Securities Regulatory Commission released a summary of its law enforcement situation in 2025, indicating heavy penalties for illegal activities by private equity funds. Some private equity funds have crossed legal boundaries by illegally raising funds, misappropriating assets, and engaging in interest transfers, severely infringing on the rights of investors and impacting industry norms. In 2025, the commission will rigorously investigate and punish illegal activities by private equity funds, eliminating "bad actors" and referring those suspected of crimes to the police in accordance with the law. Rui Feng Da, You Ce Investment, and other private equity firms involved in misappropriating fund assets and submitting false information will be given the maximum penalty, with their registrations revoked, totaling more than 76 million yuan in fines. The ultimate controllers will be banned for life from the market, setting a clear red line and bottom line.