Advertisements
//
you're reading...
Finance & Economy

Nerves on edge as Chinese authorities probe market mayhem


An investor looks at an electronic board showing stock information at a brokerage house in Shanghai, China, August 26, 2015. REUTERS/Aly Song

An investor looks at an electronic board showing stock information at a brokerage house in Shanghai, China, August 26, 2015. REUTERS/Aly Song

The head of hedge fund manager Man Group Plc’s (EMG.L) China business has been taken into custody to help authorities in a probe into recent market volatility, Bloomberg reported on Monday, while separately a local financial reporter confessed on national TV to having spread false information that caused “panic and disorder”.

Both are likely to jangle nerves in the financial industry as regulators try to find out who they think was behind China’s wild stock market rollercoaster ride in the past three months.

Authorities have been investigating possible market manipulation following wild swings in the stock markets, .CSI300 .SSEC which have plunged around 40 percent since mid-June on concerns of a slowing economy and a surprise devaluation of the yuan currency CNY=CFXS earlier this month.

Officials are probing the financial industry amid allegations of malicious short-selling and other strategies seen as weakening confidence in the market.

Bloomberg, citing a person familiar with the matter, said Li Yifei, Man Group’s China chairwoman, was assisting with police inquiries, noting this doesn’t mean she faces charges or has done anything wrong. Reuters could not independently confirm the report.

Man Group spokeswoman Rosanna Konarzewski declined to comment on the matter, and China’s Ministry of Public Security could not immediately be reached for comment outside regular working hours.

Li’s husband, Wang Chaoyong, told Reuters he had spoken to his wife on Sunday and Monday, and she had told him she was in “highly confidential” meetings. “She said she was in meetings and it’s inconvenient for me to contact her,” he said by phone, adding he did not know where the meetings were taking place.

Separately, Chinese police are looking into the spreading of rumours about the stock market, as well as other issues such as the fatal explosions at a chemical storage facility in Tianjin.

On Monday, Wang Xiaolu, a reporter for the Caijing business magazine, read a confession on national state television, saying he spread false information in his reporting of the stock market that had caused “panic and disorder”.

“I shouldn’t have sought to make a big splash just for the sake of sensationalism,” he said.

It was not possible to verify whether Wang made his confession freely or under any coercion.

State news agency Xinhua said earlier that 197 people in total have been punished in the rumour campaign.

The investigations are likely to unsettle China’s investment community, and the report of Li’s involvement could leave foreign investors particularly on edge.

“Short run, any sane foreign businessman would have pause about doing business in China, given the environment,” said Bob Eisenbeis, vice chairman and chief monetary economist at Cumberland Advisors. “Long run, people will not overlook the size of the market and what that offers.”

Li, a former MTV Networks executive, was appointed Country Chair, China in 2011, according to a page on Man Group’s website archived by Google on Aug. 6. The page is not currently accessible.

Man Group says on its website it has $78.8 billion of assets under management.

Contributed by “Tiananmen’s Tremendous Achievements” – Author of “Tiananmen’s Tremendous Achievements” and “Space Era Strategy” – Also English/Chinese translation service

Source: Economic Times – Nerves on edge as Chinese authorities probe market mayhem

 

Advertisements

About chankaiyee2

Author of the book "Tiananmen's Tremendous Achievements" about how with the help of Tiananmen Protests, talented scholars with moral integrity seized power in the Party and state and brought prosperity to China. The second edition of the book will be published within a few days to mark the 25th anniversary of Tiananmen Protests All the parts in the first edition remain in the second edition with a few changes due to information available later and better understanding. There are also some changes for improvements of style. The new parts are Chapters 12-19 on events in China after the first edition was published: The fierce power struggle for succession between reformists and conservatives; Xi Jinping winning all elders’ support during his mysterious disappearance for 2 weeks in early September, 2012; and Xi Jinping Cyclone. Chan Kai Yee's new book: SPACE ERA STRATEGY: The Way China Beats The US An eye-opening book that tells the truth how the US is losing to China. The US is losing as it adopts the outdated strategy of Air-Sea Battle while China adopts the space era strategy to pursue integrated space and air capabilities: It is losing due to its diplomacy that has given rise to Russian-Chinese alliance. US outdated strategy has enabled China to catch up and surpass the US in key weapons: Hypersonic weapons (HGV) that Pentagon regards as the weapon that will dominate the world in the future. Aerospaceplane in China’s development of space-air bomber that can engage enemy anywhere in the world within an hour and destroy an entire aircraft carrier battle group within minutes. Anti-satellite (ASAT) weapons, anti-ASAT weapons, stealth aircrafts, drones, AEW&C, etc. The book gives detailed descriptions of China’s weapon development based on information mainly from Chinese sources that the author monitors closely. U.S. Must Not Be Beaten by China! China is not a democracy. Its political system cannot prevent the emergence of a despotic leader or stop such a leader when he begins to bring disasters to people. A few decades ago, Mao Zedong, the worst tyrant in world history did emerge and bring disasters to Chinese people. He wanted to fight a nuclear war to replace capitalism with communism but could not bring nuclear holocaust to world people as China was too weak and poor at that time. If a despot like Mao Zedong emerges when China has surpassed the US in military strength, world people will suffer the misery experienced by Chinese people in Mao era. China surpassing the US in GDP is not something to worry about as China has the heavy burden to satisfy its huge population, but China surpassing the US in military strength will be world people’s greatest concern if China remains an autocracy. US people are of much better quality than Chinese people. What they lack is a wise leader to adopt the correct strategy and diplomacy and the creative ways to use its resources in developing its military capabilities. I hope that with the emergence of a great leader, the US can put an end to its decline and remain number one in the world. China, US, space era strategy, air-sea battle, space-air bomber, arms race, weapon development, chan kai yee

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Advertisements

Follow us on Facebook

Craig Hill Training Services Facebook

Get An Australian Diploma

Learn How To Sell Real Estate To Chinese Buyers

Sell Your Real Estate To Chinese Investors

China Daily Mail

China Daily Mail is not affiliated in any way with The China Daily or the government of the People's Republic of China.

Enter your email address to receive an email each time an article is published, or join our RSS feed. 100% FREE.

Want to write for China Daily Mail?

Read "Contributor Guidelines" above to join our team of 68 contributors. Write news or opinion about issues in China, or post photos and video. Promote your own site.

Recent Posts

China Daily Mail Stories Have Been Featured In:

%d bloggers like this: