CX Daily: Regulators Tighten Grip on China’s $2.9 Trillion Private Fund Industry
Fugitive Chinese billionaire Guo Wengui is arrested in New York. HKEX applies to launch a yuan counter for stock trading
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Official new measures regulating China’s private funds, released on Feb. 24 and set to take effect in May, lowered some of the upfront capital requirements for establishing a fund set in a previous version.
Funds /
Regulators tighten grip on China’s $2.9 trillion private fund industry
While private fund investment in China has ballooned into a 20 trillion yuan ($2.9 trillion) beast, risks have grown, prompting authorities to curb the industry’s rampant growth.
The Asset Management Association of China (AMAC), a fund industry group overseen by the country’s top securities regulator, released new rules Feb. 24 to tighten registration requirements for companies that seek to register as private fund managers (PFMs) and newly established privately offered funds. The rules will take effect May 1, the association said.
Fugitive /
Fugitive billionaire Guo Wengui arrested in New York
Chinese fugitive businessman Guo Wengui was arrested Wednesday morning in New York on 11 federal criminal charges, including leading a conspiracy to defraud his online followers out of over $1 billion.
Guo, also known as Kwok Ho Wan or Miles Kwok, was also charged with wire fraud, securities fraud, bank fraud and money laundering, among other crimes, according to a statement from the U.S. Justice Department.
FINANCE & ECONOMY
Hong Kong legislators in January approved regulations to waive stamp duties on eligible stock transactions conducted by market makers for dual-counter trading.
Yuan /
HKEX applies to launch yuan counter for Hong Kong-listed shares
The Hong Kong Stock Exchange (HKEX) applied to launch a yuan counter for stock trading as part of the coming dual-currency model to support development of the Chinese currency in the stock market, the bourse said Wednesday.
The yuan counter will enable investors to seamlessly switch between stocks traded in both Hong Kong dollars and yuan, offering a choice of trading currency and the potential to access new liquidity, Hong Kong Exchanges and Clearing Ltd. said.
Quick hit /
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BUSINESS & TECH
Baidu's co-founder CEO Robin Li showcases the company’s artificial intelligence-powered chatbot during a news conference at the company's headquarters in Beijing on March 16. Photo: Baidu
Baidu /
Baidu launches challenger to ChatGPT in global AI race
Baidu Inc. unveiled its artificial intelligence-powered ERNIE Bot Thursday, making the Beijing-based tech giant the latest entry in a global race to capitalize on the emerging technology.
ERNIE, short for “enhanced representation through knowledge integration” and named Wenxin Yiyan (文心一言) in Chinese, will initially target the Chinese market, Baidu CEO Robin Li said at a launch event at the company’s headquarters. The tool will initially be open to a select group of users starting Thursday before it is opened up to a wider slice of the public in the near future, he said, without providing a specific timetable.
Property /
Housing market slide slows amid signs of recovery
China’s struggling property market is showing glimmers of improvement as the protracted decline in housing investment and sales slowed during the first two months this year, official data showed.
Property investment by developers dropped 5.7% in the first two months of 2023, narrower than the 12% decline in December and the 10% slump for all of 2022, according to data released Wednesday by the National Bureau of Statistics (NBS).
Steel /
Shagang agrees to pay Fosun $1.97 billion for Nangang Iron & Steel stake
Jiangsu Shagang Group signed a formal agreement to buy 60% of Nanjing Nangang Iron & Steel United Co. Ltd. for 13.58 billion yuan ($1.97 billion) from Fosun International Ltd., the companies said Tuesday.
The price is almost 3 billion yuan lower than agreed in October. Whether the deal will go through is still up in the air as Nangang’s other parent company, Nanjing Steel Group, may favor another buyer. Other bidders — including state-owned Citic Pacific Special Steel Group Co. Ltd. and Jiangxi Fangda Steel Group Co. Ltd. — may mount rival offers.
Quick hits /
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Long Read /
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GALLERY
