China securities regulator targets ‘rat trading’
Hui Zhi
July 23, 2014
Investigators from the China Securities Regulatory Commission (CSRC) have targeted hundreds of mutual fund managers in a crackdown on “rat traders” to restore confidence in the country’s stock market.
Rat trading is a form of front-running in which fund managers use personal accounts to buy shares at a lower price, then sell them at a profit after purchases from the funds they manage have raised the shares’ value.… Continue Reading