Trading restrictions on Huaan ends

The lock-up period on China's first open-ended mutual fund will end on Friday, releasing Huaan Innovation Fund from several restrictions placed on it.

Huaan Innovation Fund was the first fund to allow investors to sell their shares back to the fund or subscribe to it based on its performance.

However, investors were prohibited from trading their shares for the first three months.

In a statement yesterday, the fund's management said the size of Huaan Innovation Fund would not be limited to five billion yuan (about HK$4.7 billion). Investors will be able to sell their shares back to the fund or subscribe to more shares.

The recent introduction of open-ended funds offers Chinese investors a greater range of investment tools. Before Huaan Innovation Fund was introduced, investors could only choose from 14 closed-ended funds.

When the fund was set up on September 21, retail investors were limited to subscribing to up to 300,000 yuan while institutional investors were allowed to subscribe to up to 500 million yuan for the first three months.