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Buying stampede greets return of mutual funds

China's first new mutual fund in four months, capped by regulators at 10 billion yuan (US$1.29 billion), has sold out within two hours in a buying frenzy. However, the rush might again trigger regulatory jitters about possible overheating in the market. This may cause a fallout via a slowing in the clip of approvals for equity funds, which resumed this month after a November halt. CCB Principal Asset Management Co on Monday started to market a new equity fund, to find investors throng outlets at agent banks and brokers trying to snap up units. The firm, owned by China Construction Bank and America's Principal Financial Group Inc, said the 10 billion yuan ceiling was reached before a noon break, disappointing a raft of queuing investors. "People are crazy ... I even saw people elbowing each other for position in the waiting line," said Yan Zhiming, a retired engineer who tried to apply for the fund at a China Construction Bank outlet. Trackback(0) TrackBack URI for this entry Comments (0) Subscribe to this comment's feed Show/Hide comments Write comment Show/Hide comment form Name Email Website Title Comment Write the displayed characters Add Comment Copyright 2007. All Rights Reserved.

 

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