China approves 5 new funds to boost markets-paper

China's securities regulator has approved the creation of five new mutual funds, including three mainly for stock investment, in an effort to support the sagging domestic stock market, a state newspaper said on Saturday.

Industrial Fund Management Co, Chang Xin and Galaxy asset management companies won approval for new stock funds on Friday, while two other firms, Huafu and Yimin, were given green light to sell funds for bond investment, the official Shanghai Securities News said without giving the value of their products.

"This was the fourth Friday in a row since Feb. 15 that regulators gave approval for launches of new mutual funds, signally fund approval has become a routine due to volatility of the stock market," the paper said.

China's stock market has retreated since hitting a record high last October, battered by profit-taking and huge corporate fund-raising programmes.

The benchmark Shanghai composite index <.SSEC> has fallen nearly 30 percent from its record peak of 6,124.044 points on Oct. 24 last year to its close of 4,300.515 points on Friday.

The China Securities Regulatory Commission resumed approving new fund launches in late January, after an informal suspension since September reflecting concerns about the country's overheated stock markets and rising speculation.