China probes ‘blind box’ funds for contract compliance
SHANGHAI (Reuters) – China is probing “blind box” funds to ensure that investment positions are in compliance with the stated contractual terms, the China Securities Journal reported on Thursday.
As disgruntled investor crowded the lobby of China Evergrande Group to protest its inability to repay loans and other financial products, chaotic scenes broke out at their headquarters.
Such “blind box” funds — those that are opaque or have been misnamed — have led to investor losses as money has been invested in sectors not set out in the fund agreement, as per the report.
According to the report, there is an industry view that makes money for investors and ignores the methods used.
According to the newspaper, an individual from Shenzhen’s fund company said that regulatory authorities had concerns about funds’ style drift.
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