The State Council of China has issued new guidelines to enhance the supervision of private equity investment funds, aiming to prevent risks and promote high-quality development. The directive calls for stricter control over the establishment of new government investment funds, particularly at the county and district levels, and mandates rigorous management of terms like "private equity fund" in business names and scopes. Regulators are tasked with refining risk assessment standards, promoting differentiated supervision, and intensifying inspections of key institutions and those operating across locations. The guidelines prohibit illegal lending and "equity disguised as debt," while also increasing efforts to combat illegal fundraising, embezzlement, and unauthorized cross-border fund flows. A whistleblower and blacklist system will be implemented to support these measures. The initiative also seeks to integrate inefficient government and state-owned enterprise investment funds, fostering patient capital and providing diverse exit channels to support technological innovation and wealth management.