China tightens oversight of $3.7 trillion mutual fund market

Chinese regulators moved to tighten oversight of the nation’s 23.9 trillion yuan ($3.7 trillion) mutual fund market, banning product recommendations by unlicensed firms and individuals.

Those without an advisory license will be prohibited from giving fund recommendations or publishing performance numbers, according to a notice from the China Securities Regulatory Commission’s Beijing bureau seen by Bloomberg. 

The move cracks down on widespread recommendations by unregulated bloggers and agencies seeking to tap growing demand for mutual funds even as authorities limit licences to a handful of firms. Regulators have also banned brokerages from hiring social media influencers to attract new customers while the