The long arm of the law

XuXiang w

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.

© ChinTell Ltd. All rights reserved.

Sponsored by HSBC.

The Week in China website and the weekly magazine publications are owned and maintained by ChinTell Limited, Hong Kong. Neither HSBC nor any member of the HSBC group of companies ("HSBC") endorses the contents and/or is involved in selecting, creating or editing the contents of the Week in China website or the Week in China magazine. The views expressed in these publications are solely the views of ChinTell Limited and do not necessarily reflect the views or investment ideas of HSBC. No responsibility will therefore be assumed by HSBC for the contents of these publications or for the errors or omissions therein.