China funds suffer investment losses of 50 billion RMB in Q2
22 July 2013
By Asia Asset Management
Mainland mutual funds bore the brunt of a slump on the A-share market, suffering total net investment losses of around 50 billion RMB (US$7.9 billion) in the second quarter of this year, according to a report from Shanghai Securities Journal.
According to figures from TX Investment Consulting, equity funds dramatically underperformed other types of fund with total losses of 45.2 billion RMB during the period. Fixed income and money market funds, meanwhile, moved against the downtrend, securing 2.12 billion RMB and 4.98 billion RMB, respectively. In stark contrast to the slide, equity funds garnered revenues of 34.1 billion RMB in the previous quarter.
The deficits were tracked by hybrid and QDII funds, which reported losses of 6.39 billion RMB and 4 billion RMB, respectively.
A-share market linked index funds, including Harvest CSI 300 ETF and E Fund 50 Index Securities Investment Fund, recorded average losses of more than 1.6 billion RMB in the second quarter due to the A-share market declines.
Chinese largest asset manager China Asset Management Co (China AMC) suffered an accumulated loss of 8.9 billion RMB in the first half as one third of its total AUM of 200 billion RMB is in A-share index funds.
More News >