CHINA’S securities regulator has launched onsite inspections of some mutual fund companies as part of efforts to strengthen management of the industry, the 21st Century Business Herald reported on Friday.
The securities watchdog, under newly appointed Chairman Wu Qing, vowed a week ago to set up a “textbook-style” supervision model to regulate China’s US$3.8 trillion mutual fund industry.
The latest round of inspections, conducted by local branches of the China Securities Regulatory Commission (CSRC), is comprehensive in nature, covering daily operations, training, and Chinese Communist Party building, the newspaper said. It did not name the asset managers inspected.
The CSRC branches inspected fund companies based outside their own regions, which the article said can prevent local interference.
Wu, nicknamed “broker butcher” after an earlier regulatory stint, was appointed CSRC chairman in early February as part of the government’s efforts to revive confidence in an ailing stock market.
Earlier this month, Wu vowed to protect small investors by cracking down on market misbehaviour and improving the quality of listed companies. REUTERS
