A former fund manager of a Shanghai-based Bank of Communications Schroders fund has been arrested for alleged insider trading, according to China Business News.

Li Xuli, who worked at the fund from 2005 to 2009, was arrested by Shanghai police on charges involving more than 100 million yuan (US$15.65 million), according to the newspaper.

Li can boast stellar performance since starting work in the mutual fund industry 14 years ago. Then aged 25, he rose from researcher at China Southern Fund to fund manager and then investment director.

Two mutual funds under his management kept their accounts in the black even during the Chinese mainland market crash from 2001 to 2005.

Li left Bocom-Schroders for Shanghai Chongyang Investment as chief investment officer in July 2009, but more than a year later he resigned, citing health reasons.

China has been stepping up supervision of the mutual fund industry. So far this year, at least three former fund managers have been barred from the industry and fined for insider trading.

In May this year, Han Gang, formerly of Great Wall Fund Management, became the first person in China to be jailed for insider trading. He was sentenced to a year.