BIZCHINA / Top Biz News |
Mutual funds should be taken as long-term investment tool(Xinhua)Updated: 2006-12-26 16:21 Mutual funds should base most part of its profit on the long-term sharing of dividends from the listed companies rather than seeking the short-term share price gap. Hong Lei, vice director of the Fund Regulatory Department of the China Securities Regulatory Commission (CSRC), made the remark at a conference held recently by a fund management company. The booming stock market has driven the profit of mutual investment funds to a record high this year. The benchmark Shanghai Composite Index closed at 2,249.11 points on Dec.14, breaking the record in history that was created five years ago. Meanwhile, China's mutual investment funds have witnessed great success this year, with its total asset approaching 800 billion yuan (102.3 billion U.S. dollars), according to Hong. The reinvigorated stock market has driven the creation of a record 58 new mutual funds in China since the beginning of the year, with a record issuance volume of 222.555 billion yuan (28 billion U.S. dollars). The rocketing share price contributed a large part of profit tothe mutual fund, having attracted much more public investors than before. Fund manage companies now shoulder greater social responsibilities as more people have stakes in mutual fund, so they have to pay more attention to the long-term profit increase of listed companies instead of the price fluctuation in short time, said Hong. Hong reminded public investors that mutual funds should be taken as a long-term investment tool and they do not fit the short-term speculation. (For more biz stories, please visit Industry Updates) |
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