China sets up private funds court

The Asset Management Association of China says the move follows a spike in complaints about the industry in recent months.

The Asset Management Association of China, the country’s regulator, has established a fund industry court in Beijing following a sharp rise in complaints about the industry last year.

The court will hear cases concerning private funds including private equity and hedge funds. It is housed in the Fangshan district court in Beijing.

A statement on the AMAC website noted that the China Securities Investment Fund Association received 1,454 complaints about the fund industry in 2016.

The court’s focus will be disputes between managers and investors, internal disputes between managers and fund investor agreement disputes.

In the statement, AMAC chairman Hong Lei called the announcement a “landmark” move, promoting specialised legal processes for the industry and establishing precedents in private funds litigation in China.

AMAC also cited the substantial growth in the funds industry and the need to be in line with international standards as reasoning for setting up the court.