China watchdog starts probe into mutual funds: media

A security guard stands outside the headquarters building of China Securities Regulatory Commission in Beijing on Sept 7, 2015. 

PHOTO: REUTERS

NOV 16, 20159:27 AM

[SHANGHAI] China's markets regulator has started probing mutual funds for illegal activity, an unnamed source told the respected China Business News on Monday.

The country's regulators have been cracking down on illegal stock trading, "malicious" short-selling and insider dealing since bourses fell sharply in mid-June.

The investigation by the China Securities Regulatory Commission (CSRC) may include some brokerages and will involve a wide ranging audit which is expected to conclude before the end of this year, the source told China Business News.

The investigation is in its early stages, but the CSRC plans to announce details this month, the source said.

The CSRC was not immediately available for comment.

REUTERS