Watchdog allows 7 fund products
By Shanghai Daily
Updated: 2007-07-17 17:18
Updated: 2007-07-17 17:18
The move comes at a time when Chinese shares have fallen in lackluster trading since May, and a slew of giant listings are scheduled to land on domestic bourses later this year.
"Apparently, the pace is being quickened to add liquidity," said Lu Minglei, a Changjiang Securities Co dealer. "We'd like to see more fund products to debut in the second half after the regulator controlled the growth rate in the first half."
Chinese mainland fund managers sold 24 new mutual funds in the January-June period, compared with 49 issued in the same period of 2006 as the stock watchdog took action to dampen the sizzling market.
However, sustained investment mania helped these funds collect 193 billion yuan during the six-month period, only slightly lower than 195 billion yuan raised a year earlier, according to industry statistics.
The China Securities Regulatory Commission early this month gave the green light to three innovative fund products unveiled by UBS AG's mainland venture, Credit Suisse's local arm and Dacheng Fund Management.
UBS SDIC Fund Management Co has raised six billion yuan in a product that consists of an open-end sub fund and a closed-end sub fund. ICBC Credit Suisse Asset Management is set to collect about six billion yuan in a fund that is a closed-end product for the first year of operation, and then converts into an open-end product.
Dacheng, which is launching a closed-end fund, is expected to pool five billion yuan late this month.
ABN Amro TEDA Fund Management and Bank of Communications Schroder Fund Management have received approvals to raise a combined 20 billion yuan in their proposed issuance.
KBC Goldstate Fund Management, partly held by Belgium's KBC Asset Management, and China Post & Capital Fund Management are also set to raise 10 billion yuan each for their new funds.
Yuan shares have dropped nearly 10 percent from all-time highs in late May after the government tripled the stamp duty on stock transactions, fuelling worries over more austerity measures.
The central government is encouraging Hong Kong-listed companies such as China Mobile and PetroChina to list on the mainland this year to boost corporate governance in the domestic market.
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