Chinese Cross-border TRS Expansion Halted! Private Equity Funds Take Emergency Action, Overseas Tech Investments May Be Affected

BlockBeats News, June 24th. Multiple private equity industry insiders in China revealed to Securities Times reporters that starting from the evening of June 23rd, they have successively received notifications from partner securities firms that the regulatory authority has requested a suspension of the expansion of cross-border Total Return Swap (TRS) business by asset managers. Affected by this, some private equity institutions participating in overseas market investments through cross-border TRS have begun to evaluate follow-up strategies. A private equity professional managing billions of assets stated that currently some existing positions have not been affected, but new positions can no longer be added, and some products are even facing a situation where they can only sell positions without opening new ones. As of now, the regulatory authority has not yet publicly released any relevant documents. (Securities Times)