Date
22 August 2017

Regulator turns gaze to online investing, website says

The China Securities Regulatory Commission (CSRC) is considering new measures to regulate online sales of investment funds, Caixin.com reported, citing sources with knowledge of the matter. Virtual stores offering high-yield funds have been extremely popular with retail investors because they promise returns much higher than bank deposit rates, with some exceeding 10 percent, according to financial news website, noting that the benchmark interest rate for a one-year deposit is 3.25 percent. However, some of the marketing tactics of these sellers are worrying the securities regulator, the report said. “The existing regulations for fund sales hardly address companies’ subsidizing operations with their own money,” a CSRC official was quoted as saying.

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