FINANCE

Ex-Goldman Analyst’s Quant Fund Convicted in China Stock Lending Crackdown

Published: Jul. 30, 2026 11:19 a.m. GMT+8

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Keyway Capital co-founder Wu Yihuang, a former Goldman Sachs analyst.

A Shanghai court has handed down criminal sentences to a quantitative fund and several individuals, including a co-founder who previously worked at Goldman Sachs, marking a rare crackdown on a gray-market trading practice in China.

The landmark conviction sends a stark warning to the country’s private funds: ceding trading control can trigger criminal liability.

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A Shanghai court convicted Keyway Capital for illicit T+0 sub-account trading, fining the firm 3 million yuan.
Co-founder Wu Yihuang, a former Goldman Sachs analyst, got a three-year suspended prison sentence.
The verdict warns private funds that ceding trading control can trigger criminal liability.

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Who’s Who

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What Happened When

2023 and 2024：: Keyway Capital illicitly leased its positions and account access to external teams via sub-account software.

July 2026：: The first-instance conviction and criminal sentences were issued to Keyway Capital and several individuals, including co-founder Wu Yihuang. The court found the firm guilty of operating as an unlicensed securities lender during 2023 and 2024. Wu Yihuang received a three-year suspended prison sentence. An external adviser was sentenced to nearly five years. Two other firm employees received prison terms. The firm was fined 3 million yuan.

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