China regulators put new mutual fund offerings on the back burner over the past two months in an attempt to cool down what appears to be an overheated market, but have just allowed ICBC Credit Suisse Asset Management’s Core Value Funds to reopen to investors, Shanghai Daily reports. Likewise, Golden Eagle Asset Management’s Component Stocks Preferred Funds will reopen later this month.
The China Securities Regulatory Commission had suspended the issuance of new mutual funds in September. As of that date, China’s mutual funds had $441.6 billion in assets under management, four times the assets in the beginning of the year.
The reason China regulators decided to permit new fund sales to resume is due to “the recent tumbles on the stock market, [which] have boosted the need to resume the sales of new fund products and give the market a lift,” said Dai Ming, an analyst with Kingsun Investment Management.