|
 That, along with a broader market sell-off and losses in the firm's
flagship funds last week, contributed to the share price fall, said
David McCann, an analyst at Numis Securities.
Bloomberg said on Monday that Man's China chairwoman, Li Yifei, was
helping authorities investigating the recent sharp swings in the
country's stock market, noting this did not mean she faced charges
or had done anything wrong.
A spokeswoman for Man Group, which says on its website that it
manages $78.8 billion of assets, declined to comment on the report
or share price move.
The company's largest investor, Odey Asset Management, also declined
to comment.
Chinese authorities have been probing possible market manipulation
following wild gyrations in the country's stock markets, which have
plunged around 40 percent since mid-June on concerns of a slowing
economy and a surprise devaluation of the yuan currency last month.
Reuters has not been able to independently confirm the Bloomberg
report and there was confusion in China on Tuesday as to what
exactly Li's situation was.
Li's husband, Wang Chaoyong, told Reuters his wife was having
meetings at a convention center in a hotel in a suburb of Beijing.
"She said she is fine, discussing many professional issues," Wang
said. "Regulators often ask some institutions to have meetings. This
is normal."
A source familiar with Man Group said the firm had no trading
operations in mainland China and only had a $50 million Qualified
Domestic Limited Partner license that allowed it to raise capital
onshore to invest in offshore assets.
As Chinese regulators investigate reasons behind a steep fall in the
country's shares, they have jangled nerves in the financial industry
and also raised questions over the ruling Communist Party's
commitment to free-market reforms.
[to top of second column] |
Earlier this month, China's markets regulator froze a trading
account linked to Citadel Securities, a unit of the U.S. group that
also owns hedge fund Citadel LLC.
"I guess a company like Man has to be in China. After all, their
original business was built on being where others were not," said
Christopher Cruden, chief executive of Insch Capital Management.
"But as always, the problem is not just that everyone rushes for the
exit at the same time. It’s that the door simultaneously gets
smaller."
At 1125 GMT, Man shares were down 4.5 percent at 154 pence in a
mid-cap index down 1.2 percent.
Li became Man's China chairwoman in 2011, having previously worked
as the head of MTV China.
(Additional reporting by Nishant Kumar and Sinead Cruise in London;
Writing by Rachel Armstrong; Editing by Alex Richardson and Mark
Potter)
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