The China Securities Regulatory Commission has imposed administrative penalties on Shenzhen Qianhai Jiuying Asset Management Co., Shenzhen Qianhai Tengchuang Investment Co. and related responsible individuals for serious breaches of private fund rules. The case found that the firms and relevant personnel used private funds to transfer benefits to Jiuying Asset and affiliated entities, and submitted false information, seriously harming investors’ lawful rights and interests. The Shenzhen Securities Regulatory Bureau imposed fines and confiscations of more than CNY 58 million on Jiuying Asset and Tengchuang Investment, and fined three responsible individuals more than CNY 1 million in total. It also imposed a five-year securities market entry ban and a five-year securities trading ban on the actual controller of the two firms. The Asset Management Association of China will, in accordance with procedure, cancel the private fund manager registrations of the relevant institutions. Where the misconduct may involve criminal offences, securities regulators will transfer the case leads to public security authorities. The enforcement action was presented in the context of State Council General Office guidance issued on June 3 that calls for strict action against illegal fundraising, embezzlement or misappropriation, self-financing and self-use, and benefit transfers in the private fund sector. The China Securities Regulatory Commission said it will continue to intensify investigations and enforcement in key areas, increase the cost of violations and strengthen investor protection.