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China to nod guaranteed funds to invest in stock futures

By Qiang Xiaoji (chinadaily.com.cn)
Updated: 2010-09-07 13:55

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China's securities regulator will allow guarantee funds to invest in stock index futures, the Shanghai Securities News reported Tuesday.

The China Securities Regulatory Commission (CSRC) released its Guidelines for Guaranteed Fund (a draft for discussion) on Monday, which made clear regulations concerning investment strategies, investment ratio, guarantor qualification and other aspects of principal guaranteed funds, the paper said.

According to the guidelines, guaranteed funds to be invested in fixed income products should be no less than 70 percent of the net value of the funds. They are also allowed to invest in stock index futures.

As of the end of June, China has six guaranteed funds in operation, with a total value of 30.49 billion yuan ($4.50 billion).