A source for the China Securities Regulatory Commission (CSRC) recently stated that the CSRC only suggested that senior mutual fund officials remain in China until the Olympics in early August to keep a stable market, they are in no which way barring them from leaving the country.
The securities regulator wont restrict any senior fund officials from leaving China and it will not make a request to them to stay either, the source said.
A Shanghai-based newspaper, The Oriental Morning Post, reports that companies seem to be heeding the suggestions of the CSRC, as they are advising top officials not to leave the country prior to the Olympic Games. The paper further indicated that the fund managers may not even be allowed to sell shares on the market as it continues to weaken. When asked, money fund management companies denied acknowledgment of such suggestions.
As the Olympic Games approach, China has become continually worried about its public image and financial status. In response to global market concerns, tighter Chinese monetary policy and threats of higher inflation, the main Shanghai stock market index has fallen 45% so far this year. These issues have put pressure on the Chinese government and business sectors, as they both look to the Olympic Games to promote social and economic development for the country.
