People familiar with the matter revealed that the Chinese government has verbally requesting some domestic fund companies to prioritize stock funds, rather than other products such as bond funds to save the downturn stock market.
Reuters on Friday (January 5) quoted four sources reports that the China Securities Regulatory Commission in recent weeks has issued the above requirements to some of the largest common fund managers in China in the form of "window guidance".
One of the sources working in the fund company said that the China Securities Regulatory Commission requested that some fund management companies had to launch at least four new stock funds before launching any new bond funds.
Another sources also said that although the proportion of stock funds and bond funds has not been set, the CSRC requires that the fundraising of stock funds should give priority to other products.
The other two sources said that the asset size is about 20 trillion yuan (about S $ 37 million) in the private equity fund industry.Fund in other asset categories.
The common fund industry with a scale of about 3.8 trillion US dollars (about S $ 5 trillion) is an important pillar of China's capital market. HoweverIn particular, the sales of stock funds have gradually decreased.
Data from the Shanghai Fund Industry Consulting Company Consulting Company, Z-Ben Advisors, showed that China established 334 stock funds last year, a year-on-year decrease of 22%, and a decrease from 2021 decreased.49%.The funds raised by these funds also decreased by 39%and 89%from 2022 and 2021, respectively.
It is reported that the Chinese government requires the initiative to give priority to the launch of new stock funds, aiming to revitalize the stock market and boost investors who have been hit by the real estate industry crisis and economic growth.
The Chinese stock market has experienced huge fluctuations in the past year, and the three major indexes have fallen. Among them, the GEM and the Shencheng Index have fallen by more than 10%.Essence
In order to boost the sluggish stock market, the Chinese government has launched a series of measures intensively in recent months, including halving the stamp duty of stock transactions, the pace of the first public issuance, and encouraging margin financing.
However, Gary Ng, an economist of French Foreign Trade Bank in Hong Kong, analyzed that the core of the current problem is confidence.Power energy, otherwise (stock) market popularity is difficult to recover. "It will not mean that investors will buy more stock fund products.
