The China Securities Regulatory Commission (CSRC) announced administrative penalties against Zhejiang Youce Investment Management Co., Ltd. and responsible individuals after identifying illegal misappropriation of private fund assets and the submission of false information. Measures include a CNY 21 million fine on the firm, combined fines of CNY 14.25 million on three responsible persons, a lifetime securities market ban on the firm’s actual controller, and the revocation of the manager registration by the Asset Management Association of China (AMAC). The investigation found the firm and its actual controller committed serious breaches of private fund laws and regulations, including diverting fund property and providing false filings. For suspected criminal offences potentially implicated by the misconduct, securities regulators will transfer relevant case leads to public security authorities in accordance with the principle of transferring all cases that should be transferred. CSRC reiterated it will continue to intensify enforcement against illegal and non-compliant activity in the private fund sector in line with the requirements of the new “Nine-Point Plan” policy framework.
China Securities Regulatory Commission 2025-12-12
China Securities Regulatory Commission fines Zhejiang Youce Investment CNY 21 million and bans its controller for life over private fund misappropriation and false reporting
The China Securities Regulatory Commission (CSRC) penalized Zhejiang Youce Investment Management Co., Ltd. and individuals for misappropriating private fund assets and submitting false information, including a CNY 21 million fine and a lifetime market ban for the firm's actual controller. The Asset Management Association of China revoked the manager registration, and securities regulators will transfer suspected criminal cases to public security authorities. CSRC emphasized ongoing enforcement in the private fund sector under the new "Nine-Point Plan" policy framework.