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