CSRC cracks down on fund managers
Updated: 2016-08-20 09:48
By Cai Xiao(China Daily)
|
|||||||||
A stock indicator shows the benchmark Shanghai Composite Index on Jan 13, 2016. [Asianewsphoto by Xie Zhengyi] |
China's securities regulator said on Friday that it has completed an inspection of private equity and privately offered fund management companies and is cracking down on illegal activities and protecting the interests of investors.
Zhang Xiaojun, a spokesman for the China Securities Regulatory Commission, said the commission conducted an inspection on 305 private equity and privately offered fund management firms in the first half of 2016.
There were a total of 2,462 individual funds involved. They manage 900 billion yuan ($135.7 billion), accounting for 14 percent of the whole private equity and privately offered fund market.
Zhang said the inspection paid attention to financing, asset safety, information disclosure, leverage and any activity damaging investor's interest.
"We found many irregularities. Four institutions are suspected of illegal financing activities and six firms may have damaged investors' interests. Sixty-five did not disclose information as required by regulations and rules," said Zhang.
"All of the institutions with irregularities will be further investigated by public security departments and related local securities regulators," he said.
He emphasized that the CSRC would continue to strengthen regulations on private equity and fund management companies and crack down on illegal activities.
The Asset Management Association of China also released a statement on Aug 1, which said that more than 10,000 private equity and privately offered fund management companies were having their licenses revoked this year.
"The revocation is to protect investors' interests and promote the healthy development of the industry," said the association.
More than 16,000 private equity and fund management companies get their licenses from the association.
The CSRC also said on Friday that it would suspend examination and approval for structured funds. A structured fund combines fixed-income securities and equities to protect investors' capital while at the same time providing the potential for capital appreciation.
"The product design and trading mechanism of structured funds are too complicated for most investors and some problems happened last year, so the CSRC will suspend its examination and approval until it perfects related regulations," said Zhang.
Related Stories
CSRC gears up for stock link 2016-08-13 07:35
CSRC speeds up tougher backdoor listing regulations 2016-08-06 07:41
CSRC fines Industrial Securities 2016-07-30 09:45
CITIC Securities violations lead to downgrade by CSRC 2016-07-16 13:34
Stocks hit by reported CSRC ban on non-core buys 2016-05-12 07:26
Today's Top News
Brexit will affect Chinese investment
Trump says he regrets past remarks
Ukrain to declare martial law if crisis deepens
Violence against Chinese in the UK under-reported
Harrowing video shows boy pulled from Aleppo rubble
China, Myanmar agree to solve suspended dam issue
Suu Kyi's visit seen as bid to boost friendship
Apple mulls R&D center in China
Hot Topics
Lunar probe , China growth forecasts, Emission rules get tougher, China seen through 'colored lens', International board,
Editor's Picks
Hollywood snaps up rock star's dog film |
Chinese people welcome dispossessed |
The can-do generation to the fore |
Riding the wave |
Leisure giants buoy cruise market |
She followed her heart |