SHANGHAI : China's fund industry association urged fund managers to better manage their reputational risk, state media said on Saturday, as asset managers increasingly become embroiled in negative rumours on social media.
The Asset Management Association of China (AMAC), supervised by China's securities watchdog, recently sent draft guidelines to fund managers, urging them to set up a sound system to stem reputational risk, the official Shanghai Securities News reported.
AMAC asked fund houses to set up a mechanism to spot, monitor, and resolve reputational risks so as to maintain a good image for the industry, as well as market stability, the newspaper said.
Fund houses should also create the position of spokesperson, staffed by someone who is professional, communicative, familiar with business operations and experienced in dealing with emergencies, it said, citing the guidelines.
AMAC, supervised by the China Securities Regulatory Commission, counts mutual fund houses, hedge fund managers and private equity firms as members.
China's asset management industry, including public and private funds, totalled 61.4 trillion yuan (US$9.48 trillion) at the end of the March, according the latest AMAC data.
(US$1 = 6.4768 Chinese yuan renminbi)
(Reporting by Samuel Shen and Andrew Galbraith; Editing by William Mallard)