Chinese funds now able to be sold by brokers

The ease and breadth of distribution for domestic mutual funds is rapidly increasing as the SD&C adopts a new clearing system.

Today Thursday a new clearing system for Chinese mutual funds will be introduced in time for a new product launch by Shenzhen-based Rongtong Fund Management, which will in turn be sold by five securities houses. The represents a first for China, where mutual funds could only previously be purchased from the fund company itself, or its bank distributor.

Amid last year's hype about introducing China's first open-ended mutual funds, one aspect went unmentioned it's very difficult to buy one. Domestic business papers have run many stories about all the loops a customer has to jump through in order to buy funds.

The regulators, keen to support the new mutual funds industry, have quickly responded. The...

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