Date
23 April 2018

Subsidiary fund firms under tighter watch, paper says

Minsheng Royal Asset Management Co. Ltd. and Ping An UOB Fund Management Co. Ltd. are under regulatory scrutiny due to the rapid growth of their capital pool and securities note business, respectively, 21st Century Business Herald reported Friday, citing unnamed sources with knowledge of the matter. Such subsidiary fund companies are typically capitalized at less than 50 million yuan (US$8.17 million). In the case of Minsheng Royal Asset Management and Ping An UOB, their registered capital is disproportionate to their business volumes, analysts were quoted as saying. Minsheng Royal Asset Management denied it had been ordered to suspend business, the report said.

– Contact HKEJ at [email protected]

EL/AC/RA

 

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