This Guiding Opinion, centering on "strengthening supervision, mitigating risks, and promoting development," sets out a systemic institutional arrangement for strengthening the supervision of private investment funds, preventing and mitigating industry risks, and promoting the high-quality development of the private fund industry. The specifics are as follows:

• Strengthening source prevention and control:

1) Establish a pre-approval review and assessment mechanism for private funds. Entities intending to apply for record-filing of private fund must first pass a "comprehensive review and consultation" jointly conducted by the financial regulatory authorities of provinces and cities specifically designated in the state plan and the local offices of the CSRC, before they may complete entity registration with the local Administration for Market Regulation. The CSRC shall uniformly specify the scope and standards for such comprehensive review and consultation.

2) Strictly control the establishment of new government investment funds; county and district-level authorities shall in principle not launch new ones.

• Comprehensively strengthening supervision:

1) At the top-level institutional level, push forward the revision of the Securities Investment Fund Law. Formulate special regulatory rules governing valuation adjustment mechanisms (VAMs). Establish a regulatory framework featuring "administrative supervision as the mainstay and self-regulatory governance as the supplement".

2) Implement differentiated supervision over different private fund managers: increase on-site inspections targeting key managers; strengthen standardized guidance for cases including off-site operation, illegal nominee shareholding and channel-based businesses; ramp up monitoring of private securities investment funds.

3) Severely crack down on illegal fundraising, embezzlement and misappropriation, self-financing and self-use, tunnelling of interests, illegal cross-border flow of funds, and participation in illegal fund-raising activities.

• Prudently manage and resolve risks:

1) Implement a tiered clean-up and disposal mechanism for existing non-compliant fund managers: Resolutely deregister managers that have committed major violations; and deregister within a specified time limit managers with abnormal operations, those that have not conducted substantive business, or those that have been out of contact for a long period and fail to make rectifications.

2) Comprehensively rectify "pseudo-private funds" that lack compliant record-filing: First, guide institutions whose names or business scopes contain the term "private fund" but have not completed fund record-filing to complete record-filing in accordance with regulations; second, for institutions that do not meet record-filing requirements, have been deregistered, or whose funds have been liquidated, encourage them to change their names and business scopes, or complete deregistration; third, for institutions that refuse to cooperate with rectification, market regulatory authorities shall standardize and clean them up by replacing the enterprise name with the Unified Social Credit Code, making negative notations in the National Enterprise Credit Information Publicity System, revoking business licenses, or taking other appropriate measures.

• Risk resolution shall be organized and implemented by the provincial-level government of the place where the fund manager is registered, in conjunction with the CSRC and other relevant authorities. Where risks arise from multiple private fund managers controlled by the same actual controller across different regions, the leading responsible province shall be determined in the following order: place of registration of the headquarters → place where the core corporate income tax is paid → place where the senior executives' individual income tax is paid.