Mutuals resume after two-month hiatus
(China Daily)Updated: 2007-02-13 09:05
SHANGHAI: The China Securities Regulatory Commission has approved five new mutual funds after a two-month suspension designed to help cool speculation.
The resumption of fund issues is widely seen as an indication that the latest stock market correction has slowed speculation.
The fall in share prices and market turnover in the past week indicates the adjustment is under way, stock analysts said.
The first approved fund, managed by CCB Principal Asset Management Co Ltd, will mostly invest in Chinese equities.
The other four new funds will be managed by China Universal Asset Management Co Ltd (CUAM), First State Cinda Fund Management Co Ltd, Huafu Fund and Zhonghai Fund Management Co Ltd.
These five funds will begin operation after the Spring Festival (February 18).
"The beginning of new funds shows the government wishes to re-establish confidence in mutual funds investors," said Liu Zhenghua, an analyst at Changjiang Securites. "Many individual investors began to sell funds in fear of the stock market slump."
The benchmark Shanghai Composite Index has dropped a total of 5 percent since
last Tuesday to close at 2,807 yesterday.
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