Funds News
- Four stock funds may raise US$5.9b
Date: 11-Jun-2007 Sources: (Shenzhen Daily)
FOUR domestic asset management firms are due to launch four equity funds over the next two weeks to raise up to 45 billion yuan (US$5.9 billion), bringing fresh capital to the domestic stock market, which is recovering from a recent sell-off.
Invesco Great Wall Fund Management Co., U.S. fund company Invesco's China joint venture, will kick off the sale of its new fund Tuesday to raise a maximum of 15 billion yuan, the company said in a statement.
Most domestic mutual funds are capped at 10 billion yuan each, but Invesco Great Wall won approval to raise up to 50 percent, a company official said.
GF Fund Management, Yimin Asset Management and Fortune SGAM, the China fund arm of French lender Societe Generale, aim to raise up to 10 billion yuan each, the companies said in separate statements.
Regulators endorsed the new funds last week in an apparent bid to stem further falls in the domestic A-share market.
Shanghai's benchmark stock index lost as much as 21 percent in the last five trading days through Tuesday morning last week after the government tripled stock transaction tax to rein in speculation. The index has rallied about 15 percent since Tuesday.
Domestic mutual fund companies manage around 1 trillion yuan in stocks, bonds, warrants and cash, dwarfed by Shanghai and Shenzhen stock markets' total combined market capitalization of about 17 trillion yuan.
The Invesco Great Wall fund will invest 70 to 95 percent of its proceeds in stocks, while the Fortune SGAM fund, scheduled to be launched for subscription today, will allocate 60 to 95 percent of proceeds to equities, according to company documents.
The GF fund, which will also be launched today, is allowed to channel 30 to 95 percent of proceeds into stocks, GF Fund Management said.
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