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Highflying stock market spurs bank to woo fund investors
17/1/2007 17:41

Jane Chen / Shanghai Daily news

China's bullish stock market has incited cooperation between bank and fund management firms to attract more fund investors.

The Shanghai branch of Agricultural Bank of China (ABC) announced yesterday it is joining eight fund firms to offer favorable monthly investment packages on 29 fund products, the Youth Daily reported.

Investors can set their investment packages by trading from the lowest amount of 100 yuan each month, compared with 500 yuan normally required by fund firms.

The commission fees for this fund trade will remain the same as those for trades at fund firms, according to ABC.

The fees vary according to the fund firms, the bank noted.

For example, the purchase rate for the IGW Domestic Demand Growth Fund (No. 2) of Invesco Great Wall Fund Management Co Ltd could run up to 2.5 percent, while no fee is charged at all for the monetary fund products.

Flooding fund investors are expected to join the fund market to profit from China's bullish stock market that has more than doubled in the past year. 

The mainland's stocks surpassed US$1 trillion in value after major benchmarks rallied.      The Shanghai Composite Index, comprising of all stocks traded on the Shanghai exchange, surged 127 percent last year.