August equity fund subscription slumps
The 38 new funds launched in August collected only 13.9bn yuan ($2.1bn) in their initial fundraisings, less than 5% of the amount raised by more than 70 funds launched in July. A majority of the new products are fixed-income funds as investors are turning to bonds and money market products for safety amid stock volatility.
China Securities Times, September 18
Senior regulator investigated
Zhang Yujun, the assistant chairman of the CSRC, is being investigated for “severe violation of discipline”, according to a statement by the Central Commission for Discipline Inspection. Zhang, 53, is one of the regulator’s three assistant chairmen and previously served as general manager at the Shanghai and Shenzhen stock exchanges. Zhang is the most senior CSRC official probed after government efforts to prop up the stock market failed to work. Others detained include a journalist and four senior managers of China’s No. 1 brokerage, Citic Securities, including the firm’s general manager, Cheng Boming.
Caixin.com, September 16
CSRC appoints new deputy director
Li Chao, former deputy head of State Administration of Foreign Exchange, has been appointed to succeed Zhuang Xinyi as deputy director of the CSRC as Zhuang is retiring. Li has pushed for a wider opening of the capital markets while at SAFE. Prior to that, he worked at the CSRC and China Construction Bank.
Caixin.com, September 15
GF sets cap for QDII funds subscription
GF Asset Management has had to limit daily purchases of its QDII product to 1m yuan ($157,000) for a single trading account as QDII products are becoming more popular and its inventory growing scarcer as investors seek to move their assets overseas after the devaluation of the yuan in early August. China’s State Administration of Foreign Exchange has not issued new QDII quotas since March, the longest suspension of new issuance in six years.
China Fund, September 14
Two investors fined for stock price manipulation
Two investors have been fined 47m yuan ($7.3m) by the CSRC for profiting from selling their holdings after driving up the prices of 14 stocks by placing excessive buy orders without buying.
Securities Daily, September 12
