Investors and Stock Markets

mutual funds: One manager at a major fund – part of the national team of investors and brokerages charged with buying stocks to revive prices – said a friend, also an executive at a large fund, was recently summoned for a meeting with regulators, along with all other mutual funds that had engaged in short-selling activity, according to Euro News. If I don’t come back, look after my wife, his friend told him, handing the manager his home telephone number. Chinese fund managers say they have come under increasing pressure from Beijing as authorities’ attempts to revive the country stock markets hit headwinds, with some investors now being called in to explain trading strategies to regulators every two weeks. China has unleashed a volley of measures to try to prop up its stock markets <.CSI300> <.SSEC> that have fallen around 40 percent since mid-June, pushing domestic brokerages and fund managers to buy up shares and banning investors with large stakes from selling their holdings for six months. Adding to those concerns is the fact that authorities have also been probing investment funds’ trading strategies, looking into whether they have been engaging in alleged malicious short-selling or market manipulation. The authorities’ meddling has unnerved many investors, leaving them questioning China commitment to liberalising its capital markets and the long-term future of the country stock markets themselves. (news.financializer.com). As reported in the news.