On Monday China's funds regulator announced that it had cancelled the licenses of over 10,000 hedge funds in the country’s financial sector as part of its crackdown on China’s poorly regulated fund management industry.
According to a press release on the closures from the Asset Management Association of China, a large proportion of the hedge funds shuttered by authorities “had no intention of getting into the business," and some of the funds “engaged in illegal fundraising for illegal and criminal activities under the guise of funds, cheating the public.”
It’s unclear how many of the funds were wealth management products masquerading as hedge funds. Wealth management products have been described as the biggest “deposit” base of China’s shadow bank and a systematic...
Login required to continue reading.
Setup a free account to get access to this article (no credit card required).
View Full Article
