A-share insider definition proves problematic

Author: Ashley Lee | Published: 6 Aug 2015

Chinese regulators’ drastic measures following recent equity volatility have eroded international investor trust. Its sale restrictions may also hit fund managers’ bottom line.

Mainland media outlets have been quick to blame foreign investors on the recent A-share drop. Last week Reuters reported that China’s securities regulator has requested trading records from brokerages in Hong Kong and Singapore, and on Monday froze a trading account owned by a subsidiary of Citadel Securities.

Many believe that response is dramatic. Even with the expansion of the renminbi qualified foreign institutional investor (RQFII) programme and the opening of the Hong Kong-Shanghai Stock...