The China Securities Regulatory Commission (CSRC) is investigating a Hong Kong fund manager for insider trading, a signal that it may move to crack down on rogue trading more broadly, the South China Morning Post reported. The CSRC announced that it is investigating Li Xuli, formerly a fund manager with Bank of Communications Schroder Fund Management, for using insider information to conduct illegal trades through the accounts of friends and relatives, also known as “rat trading.” Bank of Communications Schroder Fund Management is a joint venture between London-based Schroders (SDR.LSE, SDRC.LSE) and Bank of Communications (601328.SH, 3328.HKG). Li allegedly made RMB10 million (US$1.57 million) on the illegal trades. CSRC head Guo Shuqing said the regulator will henceforth have “zero tolerance” for insider trading. Front-running trades, or personally acquiring stock before using the firm’s funds to purchase stock, are thought to be common among fund managers in Hong Kong.