Twelve Chinese hedge fund houses unreachable by phone, text, email

NOV 24, 20154:47 PM

[SHANGHAI] China's asset management association said that it has failed to contact 12 domestic hedge fund companies after trying to contact them through telephones, e-mails and short message services.

The rare notice, dated Nov 23 and posted on the website of the Asset Management Association of China (AMAC), comes as Chinese financial executives remain under increased regulatory pressure, with many being pulled in for questioning regarding insider trading, malicious short-selling and other irregularities.

Guotai Junan International Holdings Ltd, a Hong Kong subsidiary of one of China's largest brokerages, said on Monday it had been unable to reach its chairman since last week, which prompted its shares to tumble more than 17 per cent.

The fund association urged the 12 companies, all of them little-known names, to contact it within five working days, or else would classify them as being "missing".

China's hedge fund industry has grown rapidly over the past several year, but many lost heavily during the market crash that started in mid-June.

REUTERS