China’s securities watchdog suspended the launch of new funds late last year in reaction to the surging domestic stock market. The Shanghai Composite Index nearly doubled last year.

Now the China Securities Regulatory Commission (CSRC) has said another two closed-end stock funds have won regulatory approval which brings the total approved since the ban to four.

According to the commission Bank of China Investment Management. and AXA SPDB Investment Managers will launch the funds.

It is suggested the two funds would be launched at ceilings of RMB12 billion ($1.67 billion) and RMB7 billion, respectively.

Bank of Communications Schroder Fund Management confirmed on Friday that a bond fund under its management had also obtained regulatory approval and the fund would be able to subscribe to new offerings.

The previously approved two stock funds, run by CCB Principal Asset Management and China Southern Fund Management would together raise about RMB14 billion.

The launch of these funds is expected to bring a new round of fresh capital into the sliding stock market.
Source: China View