Chinese private investment funds to conduct 'self-inspection'

August 29, 2016 9:13 PM EDT

Investors look at computer screens showing stock information at brokerage house in Qingdao, Shandong Province, China, January 11, 2016. REUTERS/China Daily


Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.

SHANGHAI (Reuters) - Chinese private investment funds will conduct a "self-inspection" of their business practices in compliance with a directive from the State Council, China's cabinet, according to a notice posted on the website of the Asset Management Association of China.

The scope of the inspection will include advertising practices, fundraising from prohibited investor classes, and other prohibited practices. The inspection initiative follows a finding by China's securities regulator that some funds had regularly violated regulations, the Association said.

The notice also requested the funds to strengthen their internal risk management and to boost training in awareness of regulations and societal responsibility.

China's finance sector has been under increased regulatory scrutiny following the dramatic stock crash in 2015 which was blamed in part on poor regulatory oversight. Regulatory attention on irregular fundraising and advertising procedures by private funds and so-called P2P lending platforms has also intensified in 2016.

(Reporting By Nathaniel Taplin; Editing by Eric Meijer)



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In






Related Categories

Reuters

Add Your Comment