New rules tipped to hit China mutual fund volumes

Tighter Chinese rules governing institutional investment in mutual funds – issued on Friday, earlier than many expected – look set to put a further dampener on the domestic mutual fund market. But they are also tipped to drive improvements in the industry in the longer term. The guidelines aim to curb the practice whereby an asset manager sets up a mutual fund for an individual institution or a small number of institutions, rather than providing traditional segregated accounts. …