Regulator reins in guaranteed funds

    CHINA’S fund regulator circulated draft rules that impose stricter controls over the country’s guaranteed funds, The Economic Observer reported Sunday.

    The Asset Management Association of China, the self-regulatory body that oversees private funds, is seeking opinions on a set of draft rules that would prevent some funds from guaranteeing principal, the paper reported. The draft rules also set limits for fund allocation, and require fund managers to have at least two years of experience in managing equity or bond funds, added the paper.

    Fund managers trim suggested equity exposure

    CHINA’S fund managers trimmed their suggested equity exposure for the next three months from a one-year high in the face of continued downward pressure on the domestic economy and stepped-up regulation, according to a latest monthly poll.

    Eight fund managers polled cut their recommended equity allocations for the next three months to 76.3 percent from 76.9 percent a month ago, which had been the highest suggested weighting since last June, the start of last summer’s stock market crash. The fund managers cut their recommended bond allocations to 5.6 percent from 6.3 percent last month, and also suggested increasing cash holdings to 18.1 percent from 16.9 percent a month ago.

    Sinopec says section of gas pipeline reopened

    SINOPEC said a section of the Sichuan-East China gas pipeline reopened Saturday, 10 days after it was hit by a landslide and fire.

    Crews worked around the clock since the accident to repair a stretch of the 2,200-kilometer pipeline in a remote region of Hubei Province, according to the official WeChat account for China Petroleum & Chemical Corp. (Sinopec). The shutdown caused natural gas supplies to industrial users in at least five provinces to be cut from 24 million to 7 million cubic meters per day, Sinopec said.

    Gome Electrical issues profit warning

    GOME Electrical Appliances Holding yesterday issued a profit warning, saying first-half profit was likely to plunge year on year due to a strategic shake-up that has seen some of its main outlets undergo renovation.

    Gome Electrical Appliances said attributable profit is likely to drop by 90-100 percent in the first half from a year earlier and adjusted profit is expected to fall by 75-85 percent.