Securities regulator suspends new funds

The China Securities Regulatory Commission (CSRC) has suspended reviewing procedures for new fund products, Xinhua reported (in Chinese). The move to control the number of new funds is seen as an effective measure for cooling capital inflows as the CSRC attempts to cool the stock market, which hit a new high of 5,500 points Tuesday. The regulator is also encouraging overseas investment through the Qualified Domestic Institutional Investor scheme (QDII) as a means of absorbing liquidity. Six institutions are to be approved for the program in the next month.