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China bars 139 funds from IPO investing
CHINA suspended 139 funds from investing in initial public offerings after money managers breached subscription rules on the country's new trading venue for technology stocks.
Shenzhen Lin Yuan Investment Management Co, Zhejiang High-Flyer Asset Management Co and Yingshui Investment Co were among firms that had multiple funds punished for the violations, with bans of six months or one year, the Securities Association of China said in a statement late Tuesday. The funds made IPO applications on the STAR market that exceeded the size of their investments, the Asset Management Association of China said separately.
The Nasdaq-style trading venue is an experimental market in China that eased limits on valuations and price-swings in the first few days of trading, increasing the potential for big gains.
Representatives of Shenzhen Lin Yuan Investment Management and Yingshui Investment couldn't be reached for comment. In an email, Zhejiang High-Flyer Asset Management vowed to improve compliance and said it will donate gains on the shares to charity, and will return any extra allocation at the offer price. BLOOMBERG