China has approved four mutual funds, in hopes that the move will restore investor confidence following the recent selloff, The Economic Times reports.

Four different companies are sponsoring the funds: Invesco Great Wall, Guangfa, Fortune SGAM and Yimin.

The China Securities Regulatory Commission suspended new fund approval in late May amid fears that a surge of cash would create an untenable bubble. Five mutual funds that came to market in China in May raised $4.6 billion.

The Shanghai Composite Index fell 8.26% on Monday, the third time in four trading sessions following an increase in the stock trading tax. It was the largest one-day drop since Feb. 27, when the index plummeted 8.84%, sending off worldwide reverberations.

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