GUANGZHOU (Fund China) - Boresa Asset , Southern Fund and China AMC fund management, the 3 topest of the total asset re-opened some of their funds’ IPO and redemption one after another but received a cool reply in the IPO market. The enthusiastic purchase did not appear at last, it went on quietly, responsed from some fund sales institutions. Maybe it was caused by not a prominent promotion before re-open.

The fund re-open purchase is going on these days, Southern Global Enhanced Balanced Fund ,the inintial QDII fund re-open its IPO at 19th acompanied with the Changsheng Tongde Theme Growth Stock Fund which had completed its focused IPO not long ago and some other funds like Southern blue growth stock fund, Southern compostion selected stock fund, China AMC Return fund, China AMC advanced groth stock fund, China International China Advantage Fund, China International Alpha Equity Fund, Zhonghai High-Grade Growth Fund, Bosera emerging growth fund, Bosera Enhanced Equity Fund and Bosera Value & Growth fund etc..

Some analysis said a great of old fund re-open IPO shows that the market has stepped into a phase for increasing the share holdings and meanwhile it exposes a tight capital for the fund management and a un-ideal focused IPO or a heavy stress in redemption for the split or transition fund. Many leading fund managements’tight capital stress is explosed at the end of IPO . Furthermore, the fund transition or split needs an approval from the China Securities Regulatory Commission.

The Fortune stated Fortune SGAM Multi Strategy Growth Fund gained approval for split and will carry out the split plan these days. The investors can purchase from the China Construction Bank, Bank of China, China Merchants Bank, China Mingsheng Bank and some other authorized institutions and the SGAM Fund Management online sale. Fortune SGAM Multi Strategy Growth Fund’s approval will be a signal for fund market release from CSRC although there is still a tight regulatory among the new stock fund. said Song sanjiang the market majordomo of SGAM.

Cool reponse from speculator

The re-opened IPO didn’t catch the investors’ attention and the banks consignment sale of fund performe not good, said the reporter. And from the investors interviewed, some said they really don’t know which funds re-opened the IPO; some show little attention at the fund market since the adjustment in the stock market; and others are in a uncertain outlook of the fund market neither purchase nor redemption.

Investors revealed that the fund management may not have enough capital for open transation. It will be good to wait for the bottom price as they are the excellent funds and the managements are highly recommended.

Song Sanjiang told the reporter, there is a balance between purchase and redemption from a whole veiv. The stock fund’s redemption outnumbers the IPO but the amount of currency fund’s IPO is increasing.

In his opinion, the cool attention of the old fund’s re-open IPO was contributed by two sides: first, without positive promotion, or a market Leverage; second, fund investors’s uncertain outlook caused by the privious fund slump.

Copyright Fund China 2008.

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