An increasing number of foreign and domestic so-called yuan funds are preparing to launch as the mainland's first regulatory framework for such funds nears completion.
About 400 foreign and domestic yuan funds are at the planning stage, of which 100 are expected to be approved, according to Kenneth DeWoskin, a director of Deloitte's China Research and Insight Centre.
He based his forecast on feedback from officials at the Ministry of Finance, sovereign wealth funds, banking and investment circles.
The yuan funds would provide an important new financing channel for China's small and medium-sized enterprises and make it easier for foreign firms to do equity investments on the mainland, DeWoskin said.
About 100 of the funds will be managed by foreign fund managers. 'By the end of 2010, yuan funds will be taking shape,' DeWoskin said. 'Most global funds that have previously invested in China are now in the process of setting up yuan funds.'
The funds planned to invest in a wide range of industries, including steel, renewable energy, property and retail, he added.