(Adds details on type of funds allowed to list)
SHANGHAI Aug 29 China may allow so-called
"sunshine" private trust funds, a prototype of hedge funds, to
list on the Shanghai Stock Exchange when conditions are
suitable, as part of a broader push to move the bourse away from
being dominated by retail investors, an official newspaper
reported on Wednesday.
"Sunshine" funds, which are similar to hedge funds but more
transparent, may be allowed to register with the stock exchange
to sell products and provide services, and when conditions are
ripe, some may be allowed to list, the China Securities Journal
The move to allow these funds to register with the exchange
could help broaden the reach of the funds.
China's 72 million retail investors account for about
three-fourths of trading on the domestic stock exchanges.
Zhang Yujun, the general manager of the Shanghai Stock
Exchange, was quoted as saying the exchange was also considering
a series of measures such as offering targeted services and new
regulations to make itself more attractive for institutional
(Reporting by Melanie Lee; Editing by Kazunori Takada and Eric