Wednesday, January 23, 2008

China approves two new equity funds: Sources

China's securities regulator on Wednesday approved at least two new domestic equity fund products, the first such approvals in several months, two executives close to the situation told Reuters.

The approval is likely to be taken as a sign of authorities' support for the stock market, which has plunged in the past week because of sliding global markets and concern about heavy new supplies of shares. An executive at Orient Securities confirmed his company had received approval from the China Securities Regulatory Commission (CSRC) early on Wednesday for a fund product to invest in the domestic A-share market.

An executive at Shenyin & Wanguo Securities said the brokerage had received CSRC approval for a similar equity fund product. Each of the products will be allowed to raise up to 5 billion yuan ($691 million) to invest in domestic stocks, said the two executives, who declined to be identified because they were not authorised to speak to the media before official announcements.

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