China Approves 37 Retail Funds to Revitalize Market

China’s government is taking steps to help its struggling stock market and economy by allowing the launch of 37 new retail funds, a move approved by the country’s securities regulator. These funds aim to give the market a much-needed push, as it has been facing various difficulties lately. To stabilize the situation, the government has also made other changes like reducing the tax on transactions (stamp duty), slowing down the number of new companies entering the market (initial public offerings or IPOs), and asking for less money upfront for trading (lower margin financing requirements).

Among these newly allowed funds, there are 10 special funds that follow the performance of the small-cap CSI 2000 Index, and 7 other funds that focus on technology companies. Additionally, there are 20 innovative funds that will change the fees they charge investors based on how big the fund is, how well it performs, or how long the investor holds onto it. The China Securities Regulatory Commission (CSRC) has made it clear that they are committed to making it quicker and easier for these funds to be set up, and they want the people who manage these funds to charge less for their services.

Even though there was a strong increase of more than 5% in the blue-chip CSI300 Index at the start of trading on Monday, the market is still down by around 6% from where it was at its highest point in April. To help with this, China’s leaders have promised to make investors feel more confident and to give the stock market a boost. This stock market is the second biggest in the world, and the government knows how important it is to make sure things are stable and people have trust in it, especially as the economy tries to get back on track.

The China Securities Journal, which is an official newspaper about financial matters, talked about how important these recent changes are in an article. They said that the people in charge are very committed to making sure the market is stable. They also said that having a market that is active and lively is really important to help keep people’s expectations steady and to build back the trust that might have been lost. It’s clear that the government is serious about making the stock market stronger and making sure people believe in it again.