China eases restrictions on mutual funds to include private vehicles

According to the draft rules posted on the China Securities Regulatory Commission's (CSRC) website, dated December 30, private funds investing in securities will be allowed to raise capital publicly if they have at least RMB10 million ($1.6 million) in paid-in capital and assets under management of at least RMB3 billion over the last three years.

Brokerage and insurance companies will be required to have at least RMB20 billion in assets under management.

"As the three types of institutions have a long asset management history in securities investment, they have already reached a large pool of capital with an established risk management profile, bringing them an advantage over other institutions to launch publicly-raised funds," the CSRC said.

In order to encourage long-term investments in the country's domestic stock market, China has also expanded quotas for foreign institutional investors and lifted the investment ceiling on foreign sovereign funds and central banks' exposure to A-share stocks.

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• Topics
• Greater China
• Regulation
• China
• CSRC