Chinese regulators moved to tighten oversight of the nation’s 23.9 trillion yuan (US$3.7 trillion) mutual fund market, banning product recommendations by unlicensed firms and individuals, reported Bloomberg.
China has been seeking to channel more household savings into the capital markets to fund innovation and aid its economic recovery, while reducing the economy’s reliance on bank lending.
Fund managers should align their interests more closely with investors, and refrain from hyping their products, Yi Huiman, chairman of the China Securities Regulatory Commission said.
“China is actively promoting high-quality growth of its capital markets, and healthy development of the 60 trillion yuan fund industry is a crucial part of it,” Yi told a meeting held by the Asset Management Association of China.
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