China’s securities regulator published draft rules on Friday to lower the threshold for launching equity mutual funds. Firms can now start these funds after raising 50 million yuan, down from 200 million yuan. This move aims to support equity fund development and guide more long-term capital into the stock market.
BEIJING/SHANGHAI, Oct 9 (Reuters) - China's securities regulator on Friday published draft rules that would lower the threshold for setting up equity mutual funds, as the country's blue-chip index neared a more than one-year low.
The revised rules for mutual fund operations are aimed at supporting the development of equity funds and guiding more long-term capital to the stock market, the China Securities Regulatory Commission said in a statement.
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Equity funds can be established after raising 50 million yuan ($7.47 million), according to the draft rules, compared with 200 million yuan currently.
The threshold changes also apply to fund of funds (FOF), but the bar for setting up fixed-income mutual funds remains unchanged.