China’s securities regulator has intensified its crackdown on rogue market activity by launching onsite inspections of some mutual fund companies.
The move, ordered by Wu Qing – an infamous veteran regulator appointed last month as chairman of national securities watchdog – is part of efforts to boost management of the industry, , the 21st Century Business Herald reported on Friday.
The regulatory body, under Wu, vowed a week ago to set up a “textbook-style” supervision model to regulate China’s $3.8 trillion mutual fund industry.
ALSO SEE: Legal & General ‘Shelves China Business Plan, Cuts Staff’
The latest round of inspections, conducted by local branches of the China Securities Regulatory Commission (CSRC), is comprehensive in nature and covers daily operations, training, and Chinese Communist Party building, the paper said.
It did not name the asset managers that officials visited.
The CSRC branches inspected fund companies based outside their own regions, which the article said can prevent local interference.
Wu, nicknamed “broker butcher” after an earlier regulatory stint, was selected in early February as part of the government’s efforts to revive confidence in an ailing stock market.
Earlier this month, Wu vowed to protect small investors by cracking down on market misbehaviour and improving the quality of listed companies.
- Reuters with additional editing by Jim Pollard
ALSO SEE:
China Ups IPO Rules to Protect Investors With ‘Teeth And Horns’
China Warns Market Rule-Breakers: ‘We Will Punish You’
Losses on $50bn Leveraged Products Behind China Stocks Plunge
China Quant Fund Apologises After Dumping Local Stocks – SCMP
Brokers in China Seen Restricting Cross-Border Stock Trades
China Pushing Equity Funds to Bolster Slumping Stock Markets
China Offshore Listings Backlog Blamed on New Scrutiny Rules
Investors Exiting China Flock to India Despite Overheating Risk
