China’s Regulator Probes Private Funds Over Multi-layered Investment Scheme

The China Securities Regulatory Commission (CSRC) is investigating a group of private funds linked to the default of products issued by Chinasoft New Momentum Asset Management Co. Ltd. and has found the funds engaged in a multi-layered investment scheme, with false information disclosure, and possible criminal behavior.

The Public Security authority is also involved in the investigation and has taken some fund personnel under control, the regulator said Friday.