A mainland industry association has revealed that it has been unable to reach 12 domestic private-equity firms, fueling concerns about the financial health of those firms and sparking redemption worries among investors.
According to the Asset Management Association of China (AMAC), the list of PE firms which it was unable to reach through phone, email and other messages included Huatian Guotai Fund, Zhongrong Kunrui Fund and Zhongyuan Baosheng Fund.
Among the 12 firms that couldn’t be reached, nine had been based in Beijing, the Hong Kong Economic Journal reported.
AMAC made repeated attempts to contact the firms since Sept. 29, but the efforts proved unsuccessful.
The association has now published a notice on its website, asking the 12 firms to get in touch and provide an explanation within five working days.
If they miss the deadline, the matter will be forwarded to the China Securities Regulatory Commission, it said.
As of the end of October, there were 21,800 PE firms registered with the association. Of those, about 21,000 entities were said to have 2 billion yuan or less in assets under management.
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