Per Woofun AI, regulatory authorities have instructed cooperating securities firms to suspend any expansion in the scale of cross-border Total Return Swap (TRS) transactions conducted by fund managers. Industry insiders confirmed that private equity firms have received formal notices requiring the immediate cessation of new applications for these derivative instruments. TRS agreements enable investors to capture the returns or losses of overseas assets without direct ownership, serving as a critical mechanism for accessing foreign markets.

This regulatory tightening coincides with the implementation of the "Comprehensive Plan for Regulating Illegal Cross-border Securities, Futures, and Fund Operations," jointly issued by eight departments including the China Securities Regulatory Commission since May. The crackdown has significantly narrowed opportunities for mainland residents to engage in unauthorized cross-border stock trading. Consequently, as direct access channels constrict, private equity products utilizing cross-border TRS to target overseas technology assets have garnered heightened investor attention, despite the new restrictions on transaction growth.