CSRC lifts ban on mutual funds
February 7, 2007
China's
securities regulator has resumed approving new mutual funds after a two-month suspension, pushing the stock
market up Wednesday, according to the South China Morning Post. Five new funds, likely to raise a combined US$3.9 billion, have been approved. They include China Construction Bank Principal Asset Management and First State Cinda Fund Management, a joint
venture between China Cinda Asset Management Corporation and Commonwealth
Bank of Australia
subsidiary First State Investments. The China Securities
Regulatory Commission suspended the launch of new mutual funds in December in
fears of a bubble. Meanwhile, the state council approved in principle regulations that pave the way for the relaunch of the financial futures market, the SCMP reported. Details of how the new
regulations will be implemented have not yet been released.