Such are the vagaries of administering markets. Five months ago, China’s securities regulators banned new stock funds in an effort to take some air out of
Shanghai’s stock bubble. Now they are allowing them again in a effort to break the fall in stock prices.
Two new closed-end funds will raise 14 billion yuan between them and will launch after lunar New Year, Shanghai Securities News reports, here via AFX. In all, Chinese funds have 3.2 trillion yuan ($445 billion) under management, more than double their assets in 2006, according to Xinhua.
The benchmark Shanghai Composite Index had doubled in the year before the China Securities Regulatory Commission imposed the fund freeze. It has fallen 30% since.