The China Securities Regulatory Commission (CSRC) has approved the launch of 37 retail funds in the hope that it will lead to a surge in activity.
Almost half (17) of the funds are ETFs, ten of which are tech-focused, while the remaining 20 mutual funds will use floating fees pegged to fund size, performance or holding period
It is the latest of a number of regulatory actions designed to revive China’s sluggish stock market and spluttering economy.
Other measures taken in recent months include a cut to stamp duty, regulatory brakes on the IPO market and lower margin financing requirements.
There have also been steps taken that directly involve the funds market, given that mutual fund sales sank to a four-year low in June.
In addition to shortening the approval of ETFs, the CSRC has also vowed to encourage fund managers, both local and overseas, to lower their management and trading fees.
The CSRC and Asset Management Association of China also called some of the world’s largest and most significant investors to a symposium in June in an effort to shore up confidence in its funds industry.
©2023 funds global asia