Shanghai Police Said to Raid Office of Hedge Fund Firm Zexi
- Zexi general manager Xu Xiang detained, Xinhua reports
- Executives at Yishidun, Huaxin also detained, says Xinhua
Shanghai police raided hedge fund Zexi Investment on Sunday, taking away computers and other materials, according to a person familiar with the matter, in the latest attempt by Chinese authorities to crack down on strategies blamed for exacerbating a $5 trillion stock-market rout.
Xu Xiang, the general manager of top-performing Zexi, was detained on charges including insider trading and stock manipulation, the official Xinhua news agency reported. Two executives at Jiangsu-based Yishidun International Trading and the technical director at Shanghai-based Huaxin Futures were arrested after a police investigation showed they made 2 billion yuan ($316 million) in “illegal profit", Xinhua reported separately, citing the Ministry of Public Security. Agricultural Bank of China Ltd. President Zhang Yun was taken away to assist authorities with an investigation, people familiar with the matter said on Monday, who didn’t give details.