Private funds of securities investment trust firms are not allowed to purchase shares in the Chinese stock market and red-chip and H shares in Hong Kong and Macau stock market, while future trust funds and discretionary future trading businesses are also banned from future transactions in China.
Chang said the government would loosen all the regulations, but added that the percentage by which the government would raise the ratio has yet to be determined.
“Twenty-four funds have been forced to close for failing to conform to the ratios. Given the tendency of holding more red-chip shares, it’s necessary to revise the regulations,” Chang said.
The government also said it would allow local securities investment trust firms to invest in China or purchase shares of China’s investment funds management companies and allow local futures firms to invest in China’s counterparts directly or indirectly.
Also See: Central bank to continue fiscal tightening: analysts
RSS