China regulator probing private funds over disclosure (updated)

Huisheng International Holdings

24/11/2023 13:43

(Adds detail, background)
       SHANGHAI, Nov 24 (Reuters) - Chinese private funds
including Hangzhou Yuyao and Shenzhen Huisheng are being
investigated over suspected false information disclosure, the
China Securities Regulatory Commission (CSRC) said on Friday.
    The CSRC said investment risks had been flagged by fund
managers such as Chinasoft New Momentum.  
    According to its preliminary judgment, personnel controlling
private funds including Hangzhou Yuyao and Shenzhen Huisheng
reported false information and may also be suspected of criminal
behaviour. 
    Reuters was unable to reach representatives of Hangzhou
Yuyao or Shenzhen Huisheng for immediate comment. 
    Public securities authorities were also involved, the
regulator said. 
    Chinasoft New Momentum Asset Management Co Ltd, a
Beijing-based fund of funds manager with 16 billion yuan ($2.22
billion) assets under management, said last week some of its
fund products had repayment difficulties, as the products, which
invested in private fund Shenzhen Huisheng, had defaulted.
        ($1 = 7.2111 Chinese yuan renminbi)

 (Reporting by Shanghai Newsroom; editing by David Goodman and
Jason Neely)
 ((Li.Gu@thomsonreuters.com;))