After two months of not approving any new products to quell sharp increases in stock prices, the China Securities Regulatory Commission has approved five new mutual funds. Industry sources have told a number of news outlets that the funds will bring in $3.9 billion. According to reports, the funds are being offered by: CCB Principal Asset Management, First State Cinda Fund Management, China Universal Asset Managemetn, Zhonghai Fund Management and Huafu Fund Management
The Shanghai Composite Index soared 130% in 2006 and rose another 10% in January. Mutual funds attracted $50 billion in mainland China last year.
The Commission has applications pending before it for another 20 new funds.