Chinese short-term bond funds to regain vitality
2006-02-27 10:38:31Source:People's DailyAuthor:
Investment in short-term bond funds will regain vitality this year after a half-year suspension on issuance due to regulatory policy adjustment, said a company source.
The Southern Fund Management Co. said that the China Securities Regulatory Commission has given a green light to its issuance of the Southern Duoli Middle and Short-term Bond Fund.
It said that the fund, to be entrusted by the Industrial and Commercial Bank of China, will be issued shortly.
Middle and short-term bond funds refer to securities investment funds on bonds with an extension period between one and five years with a monthly interest rate.
The regulatory authority is deliberating on a new auditing guidance on middle and short-term bonds, which is expected to harness the liquidity risk of the bonds.
The fund company said that the expectation of Renminbi appreciation and rising purchasing power would drive the growth of the securities investment market this year.
China's domestic saving deposits in 2005 amounted to 14.8 trillion yuan (1.85 trillion U.S. dollars), up 21.1 percent year-on-year. The country's insurance income rose 14 percent to 492 billion yuan (61.5 billion U.S. dollars).