According to the China Securities Regulatory Commission (CSRC), in order to further play the advantages of diversified asset allocation and professional investment operation of private equity funds and meet the reasonable financing needs of the real estate sector, the CSRC recently launched the pilot work of private equity investment funds in real estate. This pilot work is an important measure taken by the CSRC to implement the decision and deployment of the CPC Central Committee and the State Council on "promoting the virtuous cycle and healthy development of the real estate industry", improve the functions of the capital market, promote the inventory of the real estate market, and support the private equity industry to play its role in serving the real economy. After sorting out the finance and economics of Renmin. com, the main points of this pilot work are as follows: First, the investment scope of the real estate private equity investment fund includes specific residential housing (including stock commercial housing, affordable housing, market-oriented rental housing), commercial and operational housing, infrastructure projects, etc. Second, under the framework of private equity investment funds, the China Securities Investment Fund Association has established a new category of "real estate private investment funds" and adopted differentiated regulatory policies for the pilot. Third, private equity investment fund managers who meet certain conditions can raise and set up real estate private investment funds according to the pilot requirements to conduct real estate investment pilot. Private equity investment fund managers participating in the pilot work must have stable equity structure, sound corporate governance, and paid-in capital in line with the requirements. The main contributors and actual controllers must not be real estate development enterprises and their related parties, have real estate investment management experience and real estate investment professionals, and have not committed major violations in the past three years. Fourth, investors need to have a higher ability to identify risks and bear risks. The investors of the pilot fund products should make no less than 10 million yuan of paid-in capital in the first round, mainly institutional investors. If there is a natural person investor, the total amount of the natural person investor's contribution shall not exceed 20% of the fund's paid-in amount, and there will be certain restrictions on the fund's investment method. Fifth, the scale of the first round of paid-in raised capital of the real estate private equity investment fund shall not be less than 30 million yuan, which can be raised on the premise of meeting certain requirements. Sixth, encourage foreign investors to invest in real estate private investment funds in QFLP. At the same time, in order to implement the requirements for the pilot development of private real estate investment funds and regulate private investment funds to engage in real estate investment business, the China Securities Investment Fund Industry Association has drafted the Guidelines for the Pilot Filing of Private Real Estate Investment Funds (Trial Implementation) (hereinafter referred to as the Guidelines), which will be implemented as of March 1, 2023. The reporter noted that there are 21 articles in the Guide, which put forward normative requirements for fund custody, necessary provisions of fund contracts, related transactions, fund leverage, prohibited acts, special risk disclosure, fund filing, information disclosure and submission. It is also understood that in recent years, some private equity institutions in China have successively set up private equity funds to invest in commercial real estate and infrastructure and filed them with the fund industry association, constantly exploring and accumulating real estate investment operation experience. For example, in order to implement the work deployment of the State Council on adhering to the combination of renting and purchasing and accelerating the development of the long-term rental housing market, the CSRC supports the China Construction Bank Housing Leasing Fund to complete the filing in the Fund Industry Association in October 2022. According to the data on the official website of China Association for Science and Technology Development, as of the end of 2022, private equity real estate continued to exist