Funds & Banks Prepare for Open-Ended FundThe deputy secretary-general of China Securities Regulatory Commission (CSRC) Jin Ying recently urged to accelerate the experiments of open-ended fund and strive to make the mode of open-ended fund become the mainstream of China's fund industry in five years, adding anxiety and excitement to the fund management companies and entrust banks.Ten fund management companies are busy preparing for the open-ended fund with different ideas and styles. Some companies lay great investments in market promotion, soft and hard ware equipment, and customer services in an attempt to squeeze into the first batch experiment queue. Others are quietly waiting and seeing. They believe the transition of closed ended fund to open-ended fund will be destined, but it needs some time for investors to accept the open-ended fund and problems will occur in course the experiments. They'd rather prepare more and accumulate experience for cultivating important and stable customers to show up in the right time. As open-ended fund needs to be entrusted to banks and sold through the numerous banking departments, which will give much more business for banks, banks are also driving to set up systems for a trading platform and data handling. They never hesitate to invest great manpower and money to cooperate with fund management companies. Meanwhile, labor and social security authorities have been in cooperative research on the operation social security capital with fund management companies including Boshi, South, and Huaxia for one month. Insurance companies also have had contacts with fund management companies and be prepared for the new mode of fund on staff training as well as technical facility. It seems the open-ended fund is like a string on the arrow only waiting for the whistle of the management authorities. (Panorama) |
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