China Firms Launch ‘Sponsored’ Equity Funds with Own Cash

China’s Regulator Urges Fund Managers to Launch Equity Funds

In response to pressure from Chinese authorities to help revive the country’s struggling stock market, fund managers have been launching an increasing number of equity funds, known as “sponsored funds.” These funds are often majority bankrolled with the managers’ own funds. The aim is to prop up the stock market, which has reached five-year lows.