China’s CSRC announces findings of Baifa investigation
05 November 2013
Category: News, Asia, China
By Asia Asset Management
The China Securities Regulatory Commission (CSRC) has publicised some of its initial findings from the ongoing investigation into the questionable sales practices of the country’s first online wealth management pproduct, Baifa – a collaboration between China’s leading search-engine Baidu and China Asset Management Co (China AMC). The information outlines key responsibilities relating to core business operations.
The CSRC said on its website on November 1 that China AMC participated in the main part of the sales process including account creation, subscription and redemption, settlement, and customer services. Baidu, meanwhile, only took part in network traffic relating to the sales process.
The firm’s sales practices allegedly infringed on the Law of Securities Investment Funds by asserting a projected a target return of 8%, considered by some market players to be excessively promissory.
With the rapid development of the online fund business, CSRC said it will step up its efforts to curtail illegal fund sales practices in order to maintain a level playing field for investors and facilitate the healthy growth of China’s capital markets.