(1888PressRelease)
February 21, 2008 - Prices rose after the securities regulator granted approval for the launch of two new open-ended funds by Bank of China Investment Management Co and AXA SPDB Investment Managers.
This helped the Shanghai Composite Index to rise 64.01 in early morning trading yesterday, with the highest gains being recorded by telecommunications companies and banking institutions.
The moves by the regulator have been welcomed by analysts who perceive that the move constitutes a further effort by the government to increase capital inflows and mitigate the impact of the US sub-prime crisis on the country's economic growth.
Hu Yu, an analyst at United Securities, told Forbes: "We see the authorities continuing to release positive signals to the market.
"The approval of new stock funds and special wealth management services is expected to increase market liquidity."
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