Several private equity firms have received notices to suspend the addition of cross-border TRS.

Deep Tide TechFlow News, June 24 — According to Shanghai Securities News, several private equity industry insiders revealed that last night they received notices from cooperating brokerages indicating that regulators require a suspension of the addition of new cross-border TRS (Total Return Swap) scale managed by fund managers.
According to publicly available information, TRS stands for Total Return Swap, a financial derivative. Private equity firms can use this tool to obtain the returns (or losses) of overseas assets without directly holding foreign assets (principal not leaving the country) by signing a return swap agreement with counterpart brokerages.
Since the beginning of this year, due to the impressive performance of the global technology sector, many private equity firms have configured overseas assets through cross-border TRS.

Since May, the China Securities Regulatory Commission and seven other departments jointly issued the "Implementation Plan for the Comprehensive Rectification of Illegal Cross-Border Securities, Futures, and Fund Operating Activities," targeting major cross-border internet brokerages such as Tiger Securities, Futu Holdings, and Changqiao Securities with strong measures.
After mainland residents' illegal cross-border stock trading space shrank, private equity products using cross-border TRS to allocate overseas tech targets have attracted increasing capital attention.