New cross-border TRS positions suspended! Private funds take emergency action, overseas tech investments likely to be impacted.

Multiple private equity industry insiders told Securities China reporters that starting the evening of June 23, they have successively received notices from their cooperating brokerages, with regulators requiring a halt to the expansion of new cross-border TRS (Total Return Swap) business for managers. In response, some private equity firms that invest in overseas markets via cross-border TRS are now evaluating follow-up strategy adjustment plans. A source at a 10-billion-yuan private equity firm noted that while some existing positions remain unaffected, new positions can no longer be expanded, and some products even face a situation of "only selling, not rebalancing positions". As of press time, regulatory authorities have not publicly released relevant documents. (Securities China)