QFII A-share funds display 11.86% loss in 1H13
19 July 2013
News, China, Global
By Asia Asset Management
A downtick on the A-share market hit Qualified Foreign Institutional Investor (QFII) A-share funds hard in June, leading to an average loss of 13.47% year on year, according to a report from fund consultancy Lipper.
The decline translated into an accumulated average loss of 11.86% for the first half of this year, reflecting a 12.78% slump on the CSI 300 Index.
The AMP Capital China Growth fund suffered the largest loss among the 26 QFII A-share funds, tumbling 35%.
Qualified Domestic Institutional Investor funds suffered an average loss of 5.15% for the first half this year, which is below the average return of mainland equity funds.
Xav Feng, head of Asia Pacific research at Lipper, said the QFII quotas granted by the State Administration of Foreign Exchange for the previous 18 months were equivalent to the total amount the authority approved between 2003 and 2011. This, together with the Chinese government’s revisions to QFII program capacity, to 150 billion RMB (US$23.8 billion), suggest the A-share market will eventually be revived by rising levels of foreign capital.
More News >