Mutual funds are a popular investment vehicle for individuals in
western countries to park their retirement savings, such as via
the 401(k) scheme in the United States. But in China,
individuals often buy and sell funds frequently, much the same
way they trade stocks.
The China Securities Regulatory Commission (CSRC) told a news
conference in Beijing the new retirement funds, unlike other
mutual funds in China, will only be open to investors at certain
intervals or require a minimum holding period, to avoid frequent
outflows or inflows.
The funds will also be required to adopt mature asset allocation
strategies widely used in overseas markets, in a bid to achieve
long-term and stable returns, CSRC spokeswoman Gao Li said.
In addition, the proportion of the funds' equity holdings would
be tied to the products' lock-up periods, or investors' holding
period, Gao said.
Separately, CSRC said regulators will support quality,
overseas-listed Chinese companies to participate in mergers and
acquisitions in China's domestic stock market.
(Reporting by Zhang Xiaochong and John Ruwitch; Writing by
Samuel Shen; Editing by Jacqueline Wong)
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