At least 14 Chinese fund managers to buy their own fund products to boost capital market

 

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At least 14 Chinese fund managers have announced the move to spend combined more than 850 million yuan to buy their own fund products after Chinese regulators called for efforts to boost the capital market.

Mutual fund firms including E Fund Management, China Asset Management and Harvest Fund Management said they each will invest 50 million yuan in their own fund products.

Guotai Junan said it will use its own capital of 200 million yuan to invest in its equity fund products.

Most firms added that the reason for self-purchase was “based on the confidence in the long term healthy and stable development of China’s capital market.

The China Securities Regulatory Commission vowed to guide the fund managers to do so, in to a media briefing last Friday. Last month, more than a dozen major mutual fund firms in China cut fees for roughly 1,500 products, as regulators started reforming fee practices in an effort to reduce costs to investors.