China poised to approve 3 stock funds soon

Updated: 2007-07-09 17:12

China's securities regulator is poised to approve at least three new stock-oriented mutual funds soon, as the government moves to boost the institutional investor base amid a flood of new stock offers, industry sources said on Monday.

The new funds, expected to raise a combined 30 billion yuan ($3.95 billion), include two products to be offered by the China joint ventures of Belgian banking and insurance group KBC and British fund management firm Schroders, the sources said.

China Post & Capital Fund Management Co, the fund arm of the national postal agency, is also expected to receive the go-ahead for its new fund soon, the sources said.

The three fund houses applied to theChina Securities Regulatory Commission(CSRC) to launch new funds more than half a year ago.

They are expected to receive final approvals in the next few days or weeks, said the sources, who declined to be identified.

Officials at KBC's China unit and the China Post fund firm declined to comment.

An official at Schroders' China fund arm, in which China's Bank of Communications has a 65 percent stake, said it had applied to CSRC for a new fund issue but had not yet received final approval.

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