Mainland stocks rally after regulator clears launch of five investment vehicles
China's securities regulator has resumed approving new mutual funds after a two-month suspension, sources confirmed yesterday, a move that pushed the stock market up on expectations of a flood of new liquidity.
Five funds, which aim to raise 30 billion yuan, have been approved. China Construction Bank Principal Asset Management and Zhonghai Fund Management were among the five, sources said.
First State Cinda Fund Management, a joint venture between non-performing loan disposer Cinda Asset Management and Commonwealth Bank of Australia subsidiary First State Investments, and China Universal Asset Management were also approved, according to Reuters, which cited regulatory sources.
The Shanghai-Shenzhen 300 Index, which follows the largest yuan-denominated A shares on the two exchanges, rose 2.32 per cent to 2,369.79 points.
The Shanghai Composite Index, which tracks A shares and US dollar-denominated B shares, jumped 1.51 per cent to 2,716.18 points, while the Shenzhen Composite Index rose 1.88 per cent to end at 666.96 points.
