Shenzhen approved $690m in pilot QDIE programme
Shenzhen approved a quota of $690m for eight companies in the pilot programme of Qualified Domestic Investment Enterprise. The QDII-like program allows investments in overseas PE, hedge funds and properties, while QDII program is limited to securities investment.
The eight companies include CSOP, China Merchant Wealth, Cctic Fund, China Great Wall Securities and Penghua AM.
Caixin.com, August 29
CSRC punishes three financial software firms
Hundsun Technologies, Shanghai Mingchuang Software Technology and Zhejiang Hithink Flush Network Services were fined 453 million yuan ($71.3m) in total for illegal business activities amid the country’s stock market turmoil, with another 151 million yuan of “illicit gains” confiscated by the China Securities Regulatory Commission (CSRC).
Investors were allowed to trade securities on these platforms without providing real identities, and the three companies knowingly provided services to those unlicensed clients and pocketed illegal gains, CSRC said in a statement.
Csrc.gov.cn, September 2
Fund firms’ profits soared in the first half
Profits of the 94 listed fund firms totalled 866.8bn yuan ($136.4bn) in the first half of the year, compared to 9.6bn yuan from a year ago. The figure is more than the whole-year profits of 520.9bn yuan in 2014. About 95.8% of 2,593 funds made a profit in the first half, with equity funds and blend funds accounting for about 90% of the total profits.
Shanghai Securities Daily, August 31
Caijing magazine reporter detained for reporting on stock bailout exit
Wang Xiaolu, a reporter at Caijing magazine, was detained after his untimely report on stock market bailout exit. He admitted in a public confession aired on state broadcaster CCTV that his report caused panic in the market.
Wang’s story was published July 20, amid the government’s unprecedented efforts to prop up the stock market, said the CSRC had started researching possible scenarios for state-backed investors to pull out from the market.
Caixin.com, August 31
Four senior executives at Citic Securities detained
Xu Gang, managing director of Citic Securities, and three other senior managers of China’s largest brokerage were detained for questioning over suspected illegal securities investment. A Xinhua report said they had admitted their crimes, but did not provide details and did not say whether they were related to the Caijing reporter and a CSRC official that were detained the same day.
Xinhuanet.com, August 31