The China Securities Regulatory Commission (CSRC) and the Asset Management Industry Association of China (AMAC) have improved upon the promise they made three months ago to force more than 2,000 private fund management organisations out of business.

Established in 2012, the Asset Management Association of China refers to itself as a self-regulatory organisation that represents the mutual fund industry of China. In 2013 its members numbered 370 and included not only fund management companies but also banks, equity associations, insurance companies and trusts. Its regulatory power is derived from that of its mentor, the CSRC.

Last month AMAC gave effect to new rules that required fund managers to inform it about all their investment-related risks. Non-compliance, according to the Straits Times, has been rampant and the association is accusing many entrants into the fund market of "illegal fundraising for criminal activities under the guise of funds, cheating the public."