Brokers and insurers allowed to manage mutual funds on mainland
The mainland plans to allow brokerages and insurers' asset management units to set up and manage mutual funds available to the public as regulators seek to bolster the equities market.
Draft rules posted on the China Securities Regulatory Commission's website yesterday showed the companies needed to have at least 20 billion yuan (HK$24.5 billion) in assets under management and demonstrate they had been profitable for the past three years.
Managers of private funds will also be eligible, provided they have no less than 10 million yuan in paid-in capital and have managed a minimum 3 billion yuan in any of the past three years.
This year, Beijing has boosted quotas for foreign institutional investors and lifted the investment ceiling on overseas central banks to encourage long-term investors in the country's stock market.
"The three types of institutions can use their advantages in funding, channels, client base as well as investment and research abilities to attract various funds into the capital market," the CSRC said in a statement. "It will help increase the ranks of institutional investors and promote the long-term stable and healthy development of the capital market."