China Freezes $1 Billion of Shares as Fund Boss Xu Probed

  • Xu investigated for insider trading, stock manipulation
  • Corruption checks underway across China's financial industry
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Chinese police have frozen $1 billion of shares in listed companies as authorities probe Xu Xiang, one of the nation’s best-known hedge fund bosses, for alleged insider trading and stock manipulation.

In one of the latest moves, authorities slapped a two-year freeze on 90 million shares Xu’s Zexi Investment holds in Shanghai-based developer Deluxe Family Co.Bloomberg Terminal, according to a stock-exchange statement from Deluxe on Tuesday night. At yesterday’s closing price, that stake was worth 1.16 billion yuan ($182 million.)