A new wave of stock fund issues and fund splits could inject 80
billion yuan ($11.2 billion) into the stock market, according to
Wednesday's China Securities Journal.
Approvals for new funds reflected the government's apparent
efforts to boost the falling domestic equity market, the newspaper
reported.
The China Securities Regulatory Commission (CSRC) on February 1
gave the nod to two new closed-end stock funds issued by CCB
Principal Asset Management Co and China Southern Fund Management
Co.
The two funds made a stronger-than-expected debut on Monday,
raising 2.8 billion yuan in total. The two funds were forecast to
raise about 14 billion yuan in total.
Bank of China Investment Management Co Ltd and AXA SPDB
Investment Managers Co have also got the green light to launch new
funds soon.
The newspaper cited Bank of China chairman Xiao Gang, who said
that the division's new fund would possibly raise 10 billion yuan.
The ceiling of the AXA SPDB Investment Managers fund was likely to
reach 9 billion yuan.
Analysts told the newspaper that there would also be at least
five fund splits soon, each possibly bringing 8 billion to 10
billion yuan into the stock market.
The CSRC 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. But the benchmark index
had fallen nearly 30 percent from its record high in mid-October by
early February, as investors sold holdings due to concern over a
possible US recession.
Chinese shares lost 2.09 percent on Wednesday, with the Shanghai
index losing 97.27 points to 4,567.03.
(Xinhua News Agency February 21, 2008)
