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Fear spreads in China finance sector amid unprecedented arrests, probes

Beijing's response to the market crash was intervention: state-directed purchases of shares, a ban on IPOs and restrictions on previously allowed practices. Next, high-ranking industry figures came under scrutiny as trading strategies were probed.


THE high-drama highway arrest of a prominent hedge fund manager. Seizures of computers and phones at Chinese mutual funds. The investigations of the president of Citic Securities Co and at least six other employees. Now, add the probe of China's former gatekeeper of the IPO...