Chinese authorities have taken Li Yifei, the head of hedge fund Man Group’s China division, into custody, Bloomberg reports.
She is not under criminal investigation, and officials just want her to help them with a police probe into market manipulators, according to the report.
China’s stock market indices have been convulsing since June 12 when both the Shenzen and Shanghai indexes reversed what had been a year-long monster rally.
Chinese regulators have done everything from canceling IPOs and share issues to throwing money into the market in an effort to stem the bleeding
None of it has really worked though. It seemed like the carnage had stopped on July 8, but the slide started again on August 15.
Authorities have blamed foreigners and bad actors in the market for causing chaos.
On Monday, China’s CCTC aired the confession of a Chinese business journalist for magazine Caixin. Wang Xiaolu admitted to causing instability in the market by getting information “through private channels” and then adding his “own subjective judgment” to his reporting.
“During a sensitive period, I should not have published a report which had such a huge negative impact,” he said.
More than a hundred others have been arrested for issues relating to the stock market crash as well.
Li’s husband told Bloomberg that she was with the relevant authorities (though he doesn’t know who they are) and that he expected her home soon. Her cell phone was turned off when reporters tried to contact her.
Man Group, with $ 78.8 billion under management, is the largest publicly traded hedge fund in the world. Li is a national champion in Chinese martial arts and has been voted one of Fortune’s 50 most powerful women in the world for four years in a row.
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