Li Yifei
Chinese authorities took Li Yifei, chairwoman of hedge fund Man Group Plc’s China unit, into custody to assist with a police probe into market volatility, according to a person familiar with the matter.
Li assisting with the investigation doesn’t mean she is facing charges or did anything wrong. She has led the China business of Man Group, the world’s largest publicly traded hedge fund, since November 2011, according to her profile on LinkedIn. The person asked not to be identified because the probe isn’t public.
Li’s mobile phone was turned off when called yesterday. Chaoyong Wang, Li’s husband, said in a telephone interview that she is in a meeting with “relevant industry authorities” and he doesn’t know who they are. He said he spoke to her by telephone Sunday and yesterday, expects her back home soon but does not know when.
A call to China’s Ministry of Public Security rang unanswered. Rosanna Konarzewski, head of communications for Man Group, declined to comment.
Chinese authorities have imposed limits on wagering against stocks, known as short selling, amid a rout in equity markets. The campaign against market manipulation has snared senior executives at Citic Securities Co., China’s largest brokerage, as well as a journalist at business magazine Caijing.
As the Shanghai Composite Index has slumped about 38 percent since a selloff began in June, authorities in China have repeatedly blamed market manipulators and foreign forces for the rout. In July, the Ministry of Public Security said it would help the China Securities Regulatory Commission investigate evidence of “malicious” short selling of stocks and indexes.
“They’re sending out even stronger signal that people in China cannot short sell the market, or even long sell the market,” said Steven Leung, an executive director at UOB Kay Hian Ltd. in Hong Kong. “The signal is not good for the future development of China’s securities market.”
A resident of Beijing, Li was previously a managing director at the China unit of hedge fund GLG Partners, according to a biography posted on the Rockefeller Foundation’s website, where she is a trustee. GLG was acquired by Man Group in 2010. Before that, Li was managing director of MTV Networks in China, and also worked as chief representative at Viacom Inc.’s China arm, according to her LinkedIn profile.
In May 2001, Li was selected as one of 25 Rising Stars-Global Leaders for the Next Generation by Fortune, and for four consecutive years she was one of Fortune’s 50 Most Powerful Women. Li was also a national champion in Chinese Martial Arts, according to her Rockefeller Foundation biography.
Man Group managed USD78.8 billion as of June 30, according to an earnings report in July. Bloomberg
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