Hong Kong's Securities and Futures Commission, reacting to the market-timing and other mutual fund scandals in the United States, surveyed 48 firms with portfolios containing global securities in the first quarter of 2004. It has found isolated problems but, industry-wide, believes Hong Kong has not been subject to major problems of this nature.
Few firms reported unusual frequent trading spikes although two firms said market timers had approached them recently asking to be allowed to market time the funds. The SFC believes market timing is not severe here because most of these funds invest in Asian securities and the time difference for market closings between various Asian markets is low, creating...
