(Bloomberg) -- Chinese regulators met with global investors on Friday, according to people familiar with the matter, stepping up the government’s bid to boost market confidence as the country’s economic recovery loses steam.
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China Securities Regulatory Commission Vice Chairman Fang Xinghai met with some global venture capital and private equity firms to hear their concerns about investment in the country, the people familiar said, requesting not to be named because the matter is private. Among those present were Neil Shen, founding partner of HongShan — formerly known as Sequoia Capital China — and representatives from GIC Pte. and Warburg Pincus. Temasek Holdings Ltd.’s China head Wu Yibing also joined.
Fang was accompanied by regulators from the securities watchdog and the Asset Management Association of China, the people said. Neither agency responded to questions about the meeting outside of business hours, nor did HongShan or GIC. Temasek couldn’t immediately provide a comment while Warburg Pincus representative declined to when contacted by text message.
The rare meeting with global funds comes after Chinese President Xi Jinping’s administration voiced its strongest support in recent years for the country’s private tech enterprises just days earlier. The government’s efforts, however, have been met with skepticism, as investors call for more concrete measures and stronger stimulus to revive growth.
Topics discussed at Friday’s meeting included steps that can be taken to ensure global funds can continue to invest in China, the people said. Regulators were urged to expedite procedures for overseas initial public offering registrations, accelerate listings in mainland China and relax merger-and-acquisition rules, one of the people said.
Escalating Tensions
Escalating tensions between China and the US, Beijing’s multi-year crackdown on its private sector and the country’s weakening economy are dampening investor interest. Private equity and venture capital firms have been struggling to attract institutional money from US endowments and pensions because of these long-term concerns.
This week, a US congressional committee said it was investigating four venture capital firms for their investment in Chinese technology companies, the latest sign of Washington’s increasing scrutiny of American funds suspected of helping develop sensitive industries in China. The entities under investigation are GGV Capital, GSR Ventures, Walden International and Qualcomm Ventures.