China Admonishes Fund Firms to Tamper Growth

The China Securities Regulatory Commission has warned the mutual fund industry to be responsible about its growth, marketing and advertising, and risk controls, and to be sure to hire adequate experts and cut back on short-term trading, which is fueling market speculation.

It is the second notice the CSRC issued for the mutual fund industry, which currently has 341 funds with $444.21 billion in assets under management handled by 59 companies.

Many of China’s fund companies operate with loose management controls and fail to advise investors about the inherent risks in mutual fund investments.

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Money Management Executive
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