China Tightens Oversight of $3.7 Trillion Mutual Fund Market

  • Regulator bans fund recommendations by unlicensed firms
  • Companies, influencers rush to comply with tighter rules

Photographer: VCG/Getty Images

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Chinese regulators moved to tighten oversight of the nation’s 23.9 trillion yuan ($3.7 trillion) mutual fund market, banning product recommendations by unlicensed firms and individuals.

Those without an advisory license will be prohibited from giving fund recommendations or publishing performance numbers, according to a notice from the China Securities Regulatory Commission’s Beijing bureau seen by Bloomberg.