MAINLAND authorities are gearing up to regulate China's fledgling fund-management industry.
Although funds everywhere rise and fall on the abilities and integrity of their managers, this is particularly true in China, where fund managers are not subject to stringent examinations and controls.
Early this month, for example, Anhui Trust & Investment wound up a fund that failed to deliver - the first time this has been done since mainland funds were first established in the early 1990s.
Investors got back less than they put in because the fund consistently failed to meet projected profit forecasts.
A few months ago, Shenyang Fumin Investment Fund won a court case against Dalian Dongxin Property Development for reneging on a contract to repay the fund 17 million yuan (about HK$15.9 million) with interest.
Shenyang Fumin invested the money - half the fund - in Dalian Dongxin's projects in late 1992. Dalian Dongxin failed to pay up, forcing Shenyang Fumin to sue.
