New Rules for China’s $3 Trillion Private Fund Industry Have More Teeth, Experts Say

China is adding more teeth to regulations governing private funds, as the government aims to encourage healthy development of the 21 trillion yuan ($3 trillion) industry operating in a murkier part of the financial system than its publicly traded peers.

The new rules, which were signed by Premier Li Qiang earlier this month and made public on Sunday, provide an overarching legal framework for the industry that covers actors including fund managers and custodians. They will take effect Sept. 1.