China's securities regulators opened the country's equity market to more institutional investors Friday and may soon open the door further as part of their push to revive the ailing equity market, say experts.
Beginning from the end of last week, domestic firms offering trust products and insurance asset management services can open trading accounts in the securities market, according to announcements released on the official website of China Securities Depository and Clearing Corporation (CSDCC) Friday. Meanwhile, the China Securities Regulatory Commission and the China Banking Regulatory Commission are considering permitting banks to expand the investment scope of their wealth management products to the stock market, according to a report from the China Securities Journal, citing an insider from the CSDCC.
Prior to these announcements, insurance asset management companies and wealth management services were barred from the stock market and trust companies had been blocked from creating A-share accounts since 2009.
The regulators' goal in this move seems to be cultivating a stronger team of institutional investors to promote the development of the domestic stock market, which has long been dominated by small individual investors with limited trading expertise, Dong Dengxin, director of the Financial Securities Institute at Wuhan University of Science and Technology, told the Global Times.
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