China's new draft rules to triple the investment minimum for private equity (PE) and venture capital (VC) funds are facing industry backlash, potentially impacting small funds and startups. Proposed by securities regulators, these rules raise the investment bar to CNY3m (USD420,460) for general funds and CNY10m for single-project funds, aimed at protecting small investors. Industry leaders, like Abraham Zhang of China Europe Capital, warn this could severely affect smaller players, especially in a declining economy. Fundraising for new PE and VC funds in China fell 20% in early 2023. Critics, including Andrew Qian of New Access Capital, argue the rules could hinder early-stage tech startups and are out of step with more inclusive overseas practices. The China Securities Regulatory Commission (CSRC) insists the rules are to safeguard small investors, but the move could lead to a challenging fundraising environment for many.