China’s CSRC to streamline fund approval process
18 December 2012
News, China, Global
By Hui Ching-hoo
The China Securities Regulatory Commission (CSRC) is set to streamline the fund approval process in order to shorten the duration of common fund product approval to within 20 days, according to a report from Reuters on Friday (December 14).
An official from CSRC said the new measure will come into effective from January 1, 2013. The initiative will apply to a wide array of fund products, including bond funds, index funds, money market funds, hybrid funds, seed funds, QDII products, and single-market ETFs. However, it will not cover cross-border ETFs, given the operation of such vehicles is relatively complicated.
In addition, the official urged asset management firms to development a retreat mechanism. Asset managers should put provisions in fund contracts to stem liquidation or consolidation based on their product features and management costs.
As at the end of November, a total of 219 Mainland funds had completed their fundraising activities to collect as much as 533.7 billion RMB (US$84.7 billion).
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