SHANGHAI -(Dow Jones)- China is allowing mutual fund management companies to sell wealth-management products targeting multiple clients, effectively giving them access to China’s private wealth-management business, which has been dominated until now by trust companies and banks.
SHANGHAI -(Dow Jones)- China is allowing mutual fund management companies to sell wealth-management products targeting multiple clients, effectively giving them access to China’s private wealth-management business, which has been dominated until now by trust companies and banks.
The China Securities Regulatory Commission issued a guideline Tuesday saying mutual fund companies can raise funds from at least two investors for each private wealth-management product. Previously, it allowed fund companies to target their wealth-management products at only single investors.
Unlike mutual funds, fund raising for wealth-management products can’t be advertised through public channels such as in newspapers, on television or radio, or through other mass media, the CSRC said. But the products will be subject to few investment restrictions, such as their level of exposure to stocks.
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