Banks check wealth management proudct exposure
Since late June, China’s banks have been investigating how much exposure they have to the stock market from wealth management products and loans collateralised on stocks.
China Securities Journal, July 30
Fund manager resignations hit record high
222 mainland fund managers have resigned this year (to July 27), double the number during the same period last year. About 70% of all fund houses, or 71, saw at least one manager resign, with 17 of them losing more than five. Some of the managers left for private equity firms, and others quit due to unsatisfactory performance during the latest stock market rout.
Security Times, July 29
New investors at three-month low
Last week 390,600 new trading accounts opened in China, a three-month low, according to the China Securities Depository and Clearing Company.
In context, the figure is particularly low compared to the week of May 25, when the Shanghai composite topped 5000. That week, 1.62 million accounts were opened to trade in Shanghai and Shenzhen.
National Business Daily, July 29
CSRC halts structured long/short fund listings
The China Securities Regulatory Commission called off the listing of structured long/short funds last week after taking several other measures to stabilize the markets, such as probing into “malicious shorting”. Investors in structured funds suffered the worst financial losses when the stock markets plunged.
21st Century Business Herald, July 29
China’s SWF launches overseas direct investment arm
China Investment Corp launched its overseas direct investment operation this week. Capitalisation of CIC Capital, the new firm, is expected to reach $100bn, with the capital coming from the Ministry of Finance through a bond issue. CIC Capital said in statement that its focus will be on sectors like infrastructure and agriculture.
If CIC is capitalised at $100m, it will become the largest Chinese fund targeting long-term asset investments abroad, especially for infrastructure construction projects such as the One Belt, One Road initiative.
Caixin.com, July 29 and China Daily July 30