Regulator queries health of foreign-invested fund houses

China’s securities regulator has asked joint venture fund management companies to report on how their overseas shareholders have been affected by the escalating financial crisis, Reuters reported. The request is seen as the latest indication of growing government concern about the domestic impact of a primarily global problem. Analysts said it is possible that overseas problems might undermine investor confidence in the fund management companies or even prompt troubled foreign shareholders to pull out of the ventures. Last month Hua An Fund Management said the operations of its Qualified Domestic Institutional Investor fund had been seriously affected by the collapse of Lehman Brothers, its business partner. There has also been some concern over the health of AIG-Huatai Fund Management Co, after the US insurer was bailed out by its government on September 16. Further questions are being asked about the joint venture run by Fortis.