Financial innovation conference
The arrests or investigations targeting the finance industry in the aftermath of China’s summer market crash have intensified in recent weeks, creating a climate of fear among China’s finance firms and chilling their investment strategies. At least 16 people have been arrested, are being investigated or have been taken away from their job duties to assist authorities, according to statements and announcements compiled by Bloomberg News….
The government’s response to the market crash was intervention: state-directed purchases of shares, a ban on initial public offerings and restrictions on previously allowed practices, such as short selling and trading in stock-index futures. Next, high-ranking industry figures came under scrutiny as officials investigated trading strategies, decried “malicious short sellers” and vowed to “purify” the market.
Fear Spreads as China’s Finance Firms Face Arrests [Bloomberg]
Hedge Fund With 138% Gain Says China Shorts Easier to Spot [Bloomberg]
Earlier: China’s Solution To Trading Irregularities: Arrest Everyone; (China’s) Carl Icahn Nailed For Insider Trading