Chinese hedge funds scramble as regulators clean up 'Wild East'
Source: Reuters
China's hedge fund industry has been thrown into disarray as managers rush to comply with stringent new rules, introduced overnight, that could see over half the industry shut down by August, fund managers and lawyers told Reuters.
Domestic and foreign hedge fund managers are scrambling to secure legal advice, hire qualified staff and launch new products in a bid to save their licenses after the regulator threatened last month to close down around 17,000 "phantom" fund managers as part of a broader government financial sector crackdown.
The new hedge fund rules aim to shrink a vast industry insiders describe as a "Wild East" rife with fraud.
But many in the industry say the measures are heavy-handed and rushed, threatening to suffocate much-needed domestic and foreign institutional investment as the country faces its slowest rate of growth in more than two decades.
Read more: http://www.reuters.com/article/us-china-markets-funds-idUSKCN0WJ0D7
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