Asset Management Subsidiaries of Fund Companies Are Punished

(Beijing) – Several asset-management firms owned by investment fund companies have been recently told to stop business for months as regulators mull tighter rules for the industry to rein in risk.

Citic-Prudential Asset Management Co., a subsidiary of Citic-Prudential Fund Management Co., was ordered to stop creating and selling any new asset management products for six months, starting in May. The order came from the non-profit Asset Management Association of China, which helps the China Securities Regulatory Commission (CSRC) oversee the industry.