Beijing crackdown nets five more fund managers
Market shake-up expected as Beijing shows zero tolerance for insider trading
Beijing's war on unscrupulous fund managers continues, with the securities regulator announcing yesterday that it had moved against five employees at HFT Investment Management.
The nationwide crackdown on the mutual fund industry was expected to shake up the stock market as dozens of rogue fund managers were netted in the coming months, said sources close to the China Securities Regulatory Commission.
The regulator said yesterday that the five asset managers - Jiang Zheng, Chen Shaosheng, Mou Yongning, Cheng Dong and Huang Chunyu - had been transferred to police custody for further criminal investigation. It also said they had been found to have conducted insider trading.
The regulator has yet to publish any information about the China Asset Management probe.
"This round of investigations is going to be tough," said a fund manager. "The regulator is living up to its promise of zero tolerance for insider trading."