(Bloomberg) -- A top Chinese quantitative hedge fund was ordered to halt new product launches after poor behavior by employees against its peers, as regulators tighten oversight amid intensifying competition.

Shanghai Minghong Investment Management Co. will be barred from registering new products for three months, the Asset Management Association of China said in a Sept. 29 notice on its website. The association publicly condemned the fund after two of its employees wrote negative comments on its peers on social media. 

Minghong is one of the biggest quants in China, managing more than 60 billion yuan ($8.2 billion) in the 1.6 trillion yuan industry. It declined to comment on Saturday beyond an earlier response made last month. 

The association’s penalties came after the China Securities Regulatory Commission’s Shanghai branch reprimanded the fund on the same issue last month, requesting Minghong to improve after failing to supervise employees properly. 

The company said earlier this month it had stepped up internal controls after the CSRC rectification notice, and the employees’ actions weren’t authorized by the fund. 

China is revamping its hedge fund regulations as officials seek to professionalize an industry that has grown sevenfold over the past decade and stands out globally for its large number of players. Oversight on quant funds has also been tightened, including curbing certain fees to protect investors, Bloomberg reported last year. 

Minghong is founded by Qiu Huiming, who previously worked for Millennium Management LLC and HAP Capital Advisors LLC in the US.

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