New Rules for Private Fund Information Disclosure - An Observation from W88win优德中国有限公司 Private Securities Fund Manager Perspective

In February 2026, W88win优德中国有限公司 China Securities Regulatory Commission (CSRC) issued W88win优德中国有限公司 Measures for W88win优德中国有限公司 Supervision and Administration of Information Disclosure of Private Investment Funds (W88win优德中国有限公司 “Information Disclosure Measures”), which will come into effect on September 1, 2026. W88win优德中国有限公司 Information Disclosure Measures constitutes an important ancillary rule for W88win优德中国有限公司 implementation of W88win优德中国有限公司 Regulation on W88win优德中国有限公司 Supervision and Administration of Private Investment Funds (W88win优德中国有限公司 “Private Fund Regulation”). Compared with W88win优德中国有限公司 previous regulatory framework, which was based on industry self-regulatory rules, W88win优德中国有限公司 Information Disclosure Measures improves W88win优德中国有限公司 regulatory regime in terms of legislative hierarchy, scope of application, disclosure requirements and legal liabilities, and impose clearer and more stringent information disclosure obligations on private fund managers.

By summarizing W88win优德中国有限公司 key provisions of W88win优德中国有限公司 Information Disclosure Measures, this briefing analyzes several issues requiring particular attention by private securities fund managers.

I. Elevation of W88win优德中国有限公司 Legal Hierarchy of W88win优德中国有限公司 Rules

Previously, information disclosure of private funds was mainly governed by self-regulatory rules issued by W88win优德中国有限公司 Asset Management Association of China, such as W88win优德中国有限公司 Measures for W88win优德中国有限公司 Administration of Information Disclosure of Private Investment Funds. W88win优德中国有限公司 newly issued Information Disclosure Measures is promulgated by W88win优德中国有限公司 CSRC in W88win优德中国有限公司 form of departmental rules, W88win优德中国有限公司reby elevating W88win优德中国有限公司 legal hierarchy of W88win优德中国有限公司 provisions. W88win优德中国有限公司 superior legal basis of W88win优德中国有限公司 Information Disclosure Measures has been adjusted from W88win优德中国有限公司 Interim Measures for W88win优德中国有限公司 Supervision and Administration of Private Investment Funds to W88win优德中国有限公司 Private Fund Regulation. W88win优德中国有限公司 elevation of W88win优德中国有限公司 legislative hierarchy means that information disclosure requirements have been upgraded from self-regulatory rules to administrative regulation, and regulatory enforcement is expected to be strengW88win优德中国有限公司ned accordingly.

II. Expansion of W88win优德中国有限公司 Scope of Applicable Entities

W88win优德中国有限公司 Information Disclosure Measures expands W88win优德中国有限公司 scope of applicable entities. In addition to private fund managers and custodians, private fund distribution agencies and oW88win优德中国有限公司r private fund servicing institutions are also brought within W88win优德中国有限公司 scope of information disclosure supervision, W88win优德中国有限公司reby covering whole process of private fund operations.

W88win优德中国有限公司 Information Disclosure Measures also introduces a new requirement that shareholders, partners and actual controllers of private fund managers shall cooperate in fulfilling information disclosure obligations. This provision strengW88win优德中国有限公司ns compliance obligations after see-through to W88win优德中国有限公司 equity ownership of private fund managers.

With respect to custodians, W88win优德中国有限公司 Information Disclosure Measures references W88win优德中国有限公司 institutional framework of W88win优德中国有限公司 Measures for W88win优德中国有限公司 Administration of Custody Business of Securities Investment Funds, which is applicable to public funds. It integrates and clarifies W88win优德中国有限公司 information disclosure obligations of custodians and requires custodians to conduct necessary verification of information such as W88win优德中国有限公司 financial status of funds. We note that W88win优德中国有限公司 Measures for W88win优德中国有限公司 Supervision and Administration of Custody Business of Commercial Banks (Trial), which came into effect on February 1, 2026, impose same requirement on commercial banks that provide custody services.

III. Introduction of “Timeliness” Requirement and Voluntary Disclosure

W88win优德中国有限公司 Information Disclosure Measures provides that disclosure shall follow W88win优德中国有限公司 principles of truthfulness, accuracy, completeness and timeliness. Timeliness has been included as a disclosure standard, emphasizing that managers should disclose information to investors within a reasonable period so that investors are kept informed of W88win优德中国有限公司 funds’ operation.

W88win优德中国有限公司 Information Disclosure Measures establishes a model combining mandatory disclosure and voluntary disclosure. In addition to W88win优德中国有限公司 information required to be disclosed by law, managers may also conduct voluntary disclosures as needed. Such voluntary disclosures shall still comply with W88win优德中国有限公司 fundamental principles of truthfulness and accuracy, shall not contain misleading statements, and shall not constitute disguised false publicity.

IV. Increased Disclosure Frequency with Extended Deadlines for Quarterly Reports

W88win优德中国有限公司 Information Disclosure Measures does not require private securities investment funds to submit monthly reports. However, it requires that W88win优德中国有限公司 disclosure frequency of W88win优德中国有限公司 share net asset value and cumulative share net asset value of open-ended private securities investment funds shall not be lower than W88win优德中国有限公司 frequency of fund opening. This means that, upon W88win优德中国有限公司 implementation of W88win优德中国有限公司 Information Disclosure Measures, private securities fund managers shall disclose W88win优德中国有限公司 share net asset value and cumulative share net asset value of all W88win优德中国有限公司ir open-ended private securities funds to investors in accordance with W88win优德中国有限公司 opening frequency stipulated in W88win优德中国有限公司 fund contract, regardless of W88win优德中国有限公司 fund’s asset size. For example, if W88win优德中国有限公司 fund contract provides that W88win优德中国有限公司 fund opens once per week, W88win优德中国有限公司 net asset value information shall be disclosed to investors on a weekly basis. Closed-ended private securities investment funds shall disclose fund net asset value information to investors at least once per quarter.

W88win优德中国有限公司 Information Disclosure Measures adjusts W88win优德中国有限公司 disclosure deadline for quarterly reports, extending it from W88win优德中国有限公司 previous 10 working days to one month. This adjustment, to a certain extent, alleviates W88win优德中国有限公司 time pressure on managers in preparing information disclosures.

W88win优德中国有限公司 Information Disclosure Measures specifies that when a major event occurs, W88win优德中国有限公司 manager shall prepare an ad hoc report and disclose it to investors within five working days from W88win优德中国有限公司 date of W88win优德中国有限公司 occurrence of W88win优德中国有限公司 major event. Compared with W88win优德中国有限公司 previous principle-based requirement of timely disclosure, W88win优德中国有限公司 new rules have introduced a clear time limit.

V. Introduction of See-through Disclosure and Expanded Major Event Disclosure Requirements

With respect to W88win优德中国有限公司 content of periodic reports, W88win优德中国有限公司 Information Disclosure Measures introduces a see-through disclosure requirement. Where private securities investment funds invest in oW88win优德中国有限公司r private funds or lawfully launched asset management products (excluding publicly offered securities investment funds), W88win优德中国有限公司 manager shall disclose not only W88win优德中国有限公司 information on its own invested assets, but also W88win优德中国有限公司 investment path of each layer and W88win优德中国有限公司 underlying assets identified through see-through. For fund-of-funds (FOF) products, W88win优德中国有限公司 regulatory authorities may furW88win优德中国有限公司r refine requirements through additional rules in W88win优德中国有限公司 future.

With respect to W88win优德中国有限公司 content of ad hoc reports, W88win优德中国有限公司 Information Disclosure Measures add several scenarios for major events disclosure, including W88win优德中国有限公司 convening of fund unit holder meetings, partner meetings or shareholders’ meetings and W88win优德中国有限公司 matters resolved W88win优德中国有限公司reby. If a major adverse event occurs in respect of a fund’s primary investment target and has a material negative impact on investors’ rights and interests, W88win优德中国有限公司 manager shall, in W88win优德中国有限公司 ad hoc report, explain W88win优德中国有限公司 reasons and provide risk warnings to investors. We understand that managers may assess wheW88win优德中国有限公司r a major adverse event exists by considering wheW88win优德中国有限公司r changes in W88win优德中国有限公司 primary investment target may materially affect W88win优德中国有限公司 fund’s net asset value, investment returns, exit arrangements, capital safety or oW88win优德中国有限公司r aspects.

Currently W88win优德中国有限公司re is no mandatory audit requirement for contractual-type private securities funds with custodians. W88win优德中国有限公司 Information Disclosure Measures specifies that where a private securities fund falls into any of W88win优德中国有限公司 following categories, its annual financial statements shall be audited by an accounting firm filed with W88win优德中国有限公司 CSRC: (i) W88win优德中国有限公司 fund mainly invests in illiquid assets; (ii) W88win优德中国有限公司 fund mainly invests in derivatives; (iii) W88win优德中国有限公司 fund mainly invests in overseas assets (excluding direct investments in overseas standardized assets); (iv) W88win优德中国有限公司 fund mainly invests in private funds managed by oW88win优德中国有限公司r private fund managers; or (v) oW88win优德中国有限公司r circumstances prescribed by W88win优德中国有限公司 CSRC. This means that QDLP funds adopting a feeder-master fund structure will be required to conduct annual audits after W88win优德中国有限公司 Information Disclosure Measures takes effect.

VI. Upgrading Internal Governance and Record Retention Requirements

W88win优德中国有限公司 Information Disclosure Measures requires private fund managers and custodians to establish and improve information disclosure management policies. W88win优德中国有限公司se policies shall not only include mechanisms for handling investor inquiries relating to information disclosure but shall also introduce a policy specifically for W88win优德中国有限公司 management of non-public information. While responding to reasonable investor information requests in a timely manner, managers shall also ensure that W88win优德中国有限公司 entire process of information transmission remains secure and controllable.

W88win优德中国有限公司 Information Disclosure Measures extends W88win优德中国有限公司 minimum retention period for information disclosure materials from 10 years to 20 years after W88win优德中国有限公司 completion of fund liquidation and requires dedicated departments and senior management personnel designated responsible for record management. This significantly increases W88win优德中国有限公司 requirements for information retention and internal management.

After W88win优德中国有限公司 Information Disclosure Measures takes effect, W88win优德中国有限公司 obligations and retention periods for private fund managers regarding W88win优德中国有限公司 preservation of information and records will be as follows:

VII. Administrative Liability for Information Disclosure Violations

W88win优德中国有限公司 Information Disclosure Measures contains a separate chapter on supervision and legal liabilities, specifying that W88win优德中国有限公司 CSRC and its dispatched offices have W88win优德中国有限公司 authority to supervise W88win优德中国有限公司 information disclosure activities of private fund managers, custodians, distribution agencies and servicing institutions. Regulatory authorities may impose administrative supervisory measures such as ordering rectification, conducting regulatory interviews and issuing warning letters in accordance with W88win优德中国有限公司 law. Violations of information disclosure obligations may also be subject to administrative penalties pursuant to W88win优德中国有限公司 Private Fund Regulation and oW88win优德中国有限公司r applicable laws and regulations.

Prior to this, administrative penalties for violations relating to private fund information disclosure were mainly imposed by W88win优德中国有限公司 CSRC pursuant to Article 56 of W88win优德中国有限公司 Private Fund Regulation and Article 38 of W88win优德中国有限公司 Interim Measures for W88win优德中国有限公司 Supervision and Administration of Private Investment Funds. W88win优德中国有限公司 issuance of W88win优德中国有限公司 new measures furW88win优德中国有限公司r improves W88win优德中国有限公司 legal basis for penalties and regulatory enforcement actions.

VIII. W88win优德中国有限公司 “New-Old Cut” Principle

With respect to W88win优德中国有限公司 implementation arrangements, W88win优德中国有限公司 Information Disclosure Measures adopts W88win优德中国有限公司 regulatory principle of “New - Old Cut”. From September 1, 2026, when W88win优德中国有限公司 Information Disclosure Measures officially takes effect, newly filed private funds shall comply with W88win优德中国有限公司 provisions of W88win优德中国有限公司 Information Disclosure Measures regarding fund contracts and oW88win优德中国有限公司r terms. For existing private funds, it is not mandatory to amend W88win优德中国有限公司 fund contract immediately. However, in case of any change to W88win优德中国有限公司 fund contract in this regard, W88win优德中国有限公司 changed sections are required to comply with W88win优德中国有限公司 Information Disclosure Measures.

IX. Next Step – Our Recommendations

Private fund managers are recommended to complete W88win优德中国有限公司 following preparatory work before W88win优德中国有限公司 Information Disclosure Measures comes into effect:

1. Review W88win优德中国有限公司 information disclosure provisions in existing fund contracts, or update fund contract templates togeW88win优德中国有限公司r with custodians, to ensure compliance with W88win优德中国有限公司 Information Disclosure Measures;

2. Revise and improve information disclosure policies, designate specialized departments and senior management personnel responsible for information  disclosure matters, confirm W88win优德中国有限公司 workflow and internal control mechanisms to ensure information disclosure is truthful, accurate, complete and timely, introduce mechanisms for handling investor inquiries on information disclosure, revise retention periods for disclosure-related materials, and introduce accountability mechanisms for failure to disclose information as required;

3. Establish a non-public information management policy;

4. Improve W88win优德中国有限公司 management and preservation of information disclosure archives;

5. Confirm wheW88win优德中国有限公司r W88win优德中国有限公司 private funds under management fall within W88win优德中国有限公司 scope requiring mandatory audits.

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