Even billionaires should watch out, it seems. One of the most-viewed photos online this week featured Xu Xiang, resplendent in his white Armani jacket, being handcuffed by police. Xu runs Zexi Investment Management and is described by the Financial Times as “the leading light of the ‘Limit-up Kamikaze Squad’, a group of hedge fund managers known for their fearless speculation”. The FT says the group hail from the coastal city of Ningbo and “are known for pushing up favoured stocks by the 10% daily limit on Chinese exchanges”. But the suspicion is that Xu and his cohorts were involved in some kind of malfeasance during the turbulent stock market correction over the summer. His detention looks to be part of a broader crackdown by China’s anti-graft body on the financial sector, with 10 top executives from Citic Securities already arrested for insider trading.
The timing of the arrest was unfortunate for Xu, who was scheduled to attend the birthday party for his 100 year-old gran.
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