New China funds to shore up falling stocks

March 14th, 2008 - 11:13 pm ICT by admin  

Beijing, March 14 (Xinhua) China’s securities regulator has approved the issue of three new funds in an apparent move to shore up the falling domestic equity market, the China Securities Regulatory Commission (CSRC) said Friday. The CSRC gave the green signal to one stock fund managed by New Century Fund Management Corp Ltd and two hybrid funds managed by Lion Fund Management Ltd and Changsheng Fund Management Corp Ltd.

The industry watchdog didn’t reveal the ceiling of these new funds.

Since early February, the country has approved the issues of 18 funds, injecting more than 100 billion yuan ($14.1 billion) into the A-share market, reflecting the government’s efforts to boost the sluggish equity market.

In a similar development, the CSRC said it had granted Columbia University a Qualified Foreign Institutional Investor (QFII) licence. The New York-based University can now be one of the foreign institutions allowed to invest in yuan-denominated securities.

Despite the Shanghai Composite Index nearly doubling last year, the benchmark index has since fallen more than 30 percent from its record high in mid-October.

China stock market shares continued to lose ground Friday as concerns piled up over possible interest-rate increases and government measures to control record inflation.

China’s benchmark Shanghai Composite Index on the Shanghai Stock Exchange closed at 3,962.67 Friday, down 8.58 points, or 0.22 percent, from the previous close.

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