China Eases Requirements for Launching Equity Mutual Funds, Lowering Minimum Raise from 200 Million Yuan to 50 Million Yuan
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The China Securities Regulatory Commission published a draft rule on the 9th easing the requirements for launching equity mutual funds. Under the draft, the minimum amount that must be raised to launch an equity mutual fund would be lowered from the current 200 million yuan to 50 million yuan, or 7.47 million dollars. The easing would also apply to funds of funds that invest in other mutual funds, while requirements for bond-investing mutual funds would remain unchanged. In a statement, the CSRC said the rule revision is aimed at supporting the development of equity mutual funds and channeling more long-term capital into the stock market. The measure comes as China's main stock indexes approach their lowest levels in more than a year, with the CSI 300 index of major stocks closing on the 9th near a one-year low as selling in artificial intelligence supply chain-related shares intensified further.