Fear Spreads as China's Finance Firms Face Arrests
- "People are worried" as hedge funds, traders, CSRC targeted
- At least 16 connected to finance world caught up in crackdown
Pedestrians holding umbrellas walk past buildings illuminated at night in the Lujiazui district of Shanghai, China, on Thursday, Oct. 29, 2015. The Communist Party ended its four-day plenum on Thursday, with Premier Li Keqiang signaling the leadership may be ready to accept the weakest period of expansion since the economy was opened up three decades ago.
Photographer: Qilai Shen/BloombergThe high-drama highway arrest of a prominent hedge fund manager. Seizures of computers and phones at Chinese mutual funds. The investigations of the president of Citic Securities Co. and at least six other employees. Now, add the probe of China’s former gatekeeper of the IPO process himself.
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.