Xiamen Tsinghua Red Grain Private Equity received a warning letter for failing to inform investors of risks and other issues

On March 27, Blue Whale News reported that the Xiamen Securities Regulatory Bureau issued a decision on administrative regulatory measures directed at Xiamen Qingda Honghe Private Fund Management Co., Ltd.

The decision shows that Xiamen Qingda Honghe Private Fund Management Co., Ltd. has the following violations in its private fund business: it failed to fully perform its prudent diligence obligations, with long periods during which it did not conduct industrial and commercial registration of the investment targets of the funds under its management; it did not provide risk disclosure to some ordinary investors of the managed private funds, nor did it record the entire warning process through audio or video.

These actions violate the provisions of the “Interim Measures for the Supervision and Administration of Private Investment Funds” and the “Measures for the Appropriate Management of Securities and Futures Investors.”

In response, the Xiamen Securities Regulatory Bureau decided to take supervisory measures by issuing a warning letter to Xiamen Qingda Honghe Private Fund Management Co., Ltd. and will include the relevant situation in its integrity file.