U.S.-Focused Fund Manager Condemned for Cheating Investors

Caixin Global | May 22, 2020 at 9:30 PM
  • Cornerstone Management Inc., a Chinese private investment fund manager focusing on investing in U.S.-listed Chinese stocks, was condemned by a provincial securities regulator for lying to investors, casting a shadow over its planned New York IPO.
  • It ordered (link in Chinese) the Guangzhou-based company to rectify its wrongdoing and issued a warning notice (link in Chinese) to its CEO He Xu.
  • The two private investment funds, which initially raised 860 million yuan ($121 million) in total after being set up in 2017 and 2018, plunged in value in recent months, causing huge losses despite the company’s promise of a minimum 8% annual return in supplementary documents to the investment contracts.