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China News Service, July 19: Shantou Yihua Investment Co., Ltd. (hereinafter referred to as Yihua Investment) was warned by the Guangdong Securities Regulatory Bureau for violations of private equity business.

The administrative supervision measures decision document disclosed on the website of the Guangdong Securities Regulatory Bureau on the 19th showed that after investigation, Yihua Investment had the following violations in the process of carrying out private investment fund management business:

　　First, failure to perform duties in accordance with regulations during the management of fund products;

Second, the fund information was not disclosed to investors in accordance with regulations;

Third, the managed funds contain illegal clauses in the agreements and supplementary agreements, such as stipulating the provision of priority share income and the subordinated share partners making up the difference to the priority share partners.

The above-mentioned acts violated the provisions of Article 4, paragraph 1, and Article 24 of the "Interim Measures for the Supervision and Administration of Private Investment Funds" (CSRC Order No. 105, hereinafter referred to as the "Private Measures") and Article 4, paragraph 1 of the "Interim Provisions on the Operation Management of Private Asset Management Business of Securities and Futures Institutions" (CSRC Announcement No. 13 [2016], hereinafter referred to as the "Interim Operation Provisions").

In accordance with Article 33 of the Private Placement Measures and Article 12 of the Interim Operation Regulations, the Guangdong Securities Regulatory Bureau decidedAdministrative supervision measures of issuing a warning letter were taken against Yihua Investment.

In addition, Lin Hao, general manager of Yihua Investment, was also warned.

The Guangdong Securities Regulatory Bureau pointed out thatAs the legal representative and general manager of Yihua Investment, Lin Hao is directly responsible for the above-mentioned violations.

In accordance with Article 33 of the Private Placement Measures and Article 12 of the Interim Operation Regulations, the Guangdong Securities Regulatory Bureau decidedAdministrative supervision measures of issuing a warning letter were taken against Lin Hao.

The website of the Asset Management Association of China shows that Shantou Yihua Investment Co., Ltd. was established in 2016 with a registered capital of 10 million yuan and paid-in capital of 1 million yuan. Its business types include private equity investment funds, private equity investment FOF funds, venture capital funds, and venture capital FOF funds. The management scale ranges from 0 to 500 million yuan. (China News Service APP)