Ex-Fuxing Group Executives Punished for Fraud That Rocked China’s Private Fund Industry

The securities regulator has punished two former executives from a Shanghai-based private fund conglomerate with lifetime bans from the securities markets for their role in a fraud that cost investors billions of yuan.

The punishment is the latest move by authorities in a case that revealed brewing risks in China’s young, booming private fund sector, which has been plagued by shady practices that exploit legal loopholes.