It is reported in the market that private fund managers' investment in non-standardized creditor's rights, granting entrusted loans or providing guarantees, and engaging in unlimited liability investment may be considered prohibited by the regulatory authorities in the new framework of private placement supervision.

20 15, 1 June, 2008, the CBRC issued the fourth paragraph of Article 11 of the Administrative Measures for Entrusted Loans of Commercial Banks (Draft for Comment), which also prohibited private equity funds from acting as principals of entrusted loans. If the exposure draft comes into effect, the way for debt-based private equity funds to issue entrusted loans will be blocked. It can be seen that the regulatory authorities have long been determined to suspend the non-standard credit business entrusted by private equity funds.