• wblogo
  • wblogo
  • wblogo

Punishments all round for Chinese private funds

Chris Hamblin, Editor, London, 11 September 2017

articleimage

Having uncovered all sorts of regulatory infractions and conflicts of interest, the China Securities Regulatory Commission has penalised 87 funds that target private investors.

The CSRC is trying to clean up the sector and issued a consultative paper on the subject recently. The comment period closes at the end of the month.

Funds of this kind are not allowed to market their wares to the public directly. They usually target HNW individuals but must do so privately and with not more than 200 investing at a time. They invest in risky products such as securities and derivatives.

Caixin Global reports that the CSRC is imposing administrative penalties. It is doing so in the aftermath of an industry-wide investigation involving 328 such funds. Too much debt in structured products and bad profiling of the risks that investors faced were among the problems. Some firms allegedly overstepped the mark even further by acting as venues for financial crime.

Latest Comment and Analysis

Latest News

Award Winners

Most Read

More Stories

Latest Poll