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Open-end Funds to Debut Later This Year or Earlier Next Year: Cao Fengqi
Professor Cao Fengqi forecasted open-end funds will be launched later this year or earlier next year.
The noted economist, now heading a drafting group of investment fund law, made the remark on the 15th in Beijing when he guested on an online show delivered by Panorama Network in Beijing.
He said that, to his knowledge, the pilot scheme for open-end funds has been submitted to the State Council for approval and is likely to be approved very soon. He predicted a few open-end funds will be launched at the end of this year or at the beginning of next year.
According to Cao, there will be only a small number of open-end funds and close-end funds will be in the majority. A half-close approach is also likely to be adopted, he predicted, which means transforming the original close-end funds into open-end ones after the former are kept closed for several years.
Open-end funds will also be hotly pursued when they are available. However, that will have no impact on the operation of close-end funds, he said.
Launch of open-end fund will bring more pressure to the management companies as they have to cope with both of the funds. Nevertheless, it is very common in foreign countries that a fund manager manages a dozen and even several dozens of funds. He believed China Securities Regulatory Commission (CSRC) has the ability needed to oversee the open-end funds. But he also admitted open-end funds involve a lot of risks.
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