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Chinese open fund investors may find it easier to trade their portfolios by resorting to a soon-to-be-launched service at the country's stock exchanges, announced the two exchanges respectively in east China's Shanghai Municipality and the southern city of Shenzhen on Wednesday.
Investors who possess an account with either exchange will be able to purchase, declare and trade open funds at the respective exchanges once the service is officially launched.
Transactions could be conducted online, over the counter or via telephone. Investors may also assess fund information on the stock exchanges' platform.
Currently, banks dominate fund sales in China and securities companies are usually at a disadvantage in competing with banks in serving fund investors, who usually need to undergo a quite complicated process of buying funds from banks and seeking relevant investment consultation from securities companies separately.
Zhu Congjiu, general manager of the Shanghai Stock Exchange, viewed the new service as an important move to facilitate open fund investors in selecting and trading their portfolios and enhancing the competitiveness of securities companies in fighting with banks to secure more market shares in fund sales.
The Shenzhen Stock Exchange has chosen six funds for the operation of the new service. A fund managed by Yinhua Fund Management Company will likely be the guinea pig at the Shanghai Stock Exchange.
China had 47 fund management companies as of June 22, 2005, dealing with 170 funds of which 116 are open funds valued at 344.6 billion yuan (US$41.7 billion) total.
(Xinhua News Agency July 15, 2005)
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