China's largest fund Shanghai Minghong banned from registering new products

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China's largest fund Shanghai Minghong banned from registering new products

BEIJING : Shanghai Minghong Investment Management Co, one of China's largest quantitative hedge funds, has been banned from registering new products for three months due to 'inappropriate' staffing, the Asset Management Association of China said.

Shanghai Minghong failed to conduct effective internal control over issues such as employees' 'inappropriate comments' about the company's peers on social media and failed to prompt them to make rectifications, the association said in a statement dated Sept. 29.

The Shanghai branch of the China Securities Regulatory Commission admonished Minghong at the end of August, saying the failure to implement effective internal controls was a failure to meet their obligations of prudence and diligence.

The measures against Shanghai Minghong, established in 2014, come as the industry rapidly expands, with total assets managed nearly double in 2021 from a year earlier to more than 1.08 trillion yuan.

Shanghai Minghong has not been able to comment on the incident, because of a public holiday in China.