Chinese funds to carry risk ratings
From Times Wire Services
China’s securities regulator has ordered investment managers to provide risk ratings on their mutual funds.
Fund managers should indicate to investors whether a fund is of high, medium or low risk, the China Securities Regulatory Commission said in a statement posted on its website Thursday. The rules take effect immediately, the statement said.
Managers should also classify the risk appetites of their investors as conservative, stable or aggressive, according to the clients’ investment aims, time horizon and financial situation, the statement said.
Chinese stocks have soared this year, sparking concerns of a market bubble. The nation’s fund management industry was reported to have assets of $239.6 billion at the end of June.
