On Saturday, the
“We have just been informed by regulatory authorities that they have started a formal investigation of our employee Tang Jian over investment irregularities,” China International Fund Management said in a statement. “Through our cooperation with regulators in the probe, we found Tang Jian is suspected of using insider information to engage in illicit investment activities.”
Tang, a well-known fund manager, is the first fund manager in China to lose his job over suspicion of illicit trades. Insider watchers believe the investigation could dampen investors’ enthusiasm for mutual funds. In 2000, China’s fund industry was investigated after it was discovered that fund managers were meeting in saunas to exchange market information without fear of wiretaps.