China’s mutual fund market attracted 291 billion RMB (US$41.97 billion) of net inflows in the first quarter, marking a reversal from the final three months of 2022 which saw 74.8 billion RMB of outflows, according to figures compiled by IIC Analytics, an investment consulting firm based in Shanghai.
It attributes the rebound primarily to a revival of risk appetite, with stock markets recovering after China scrapped its zero-Covid policy and reopened its doors to the world after almost three years.
As a result, investors piled into equity funds and international products, IIC Analytics says in a report on May 10. However, bond, passive and balanced funds still suffered outflows.
Assets managed by China’s 156 registered asset managers rose to 25.9 trillion RMB in March from 25.2 trillion RMB at the end of 2022, and 24.6 trillion RMB a year ago.
“The holistic business lines of leading managers proved valuable – two thirds of the top 30 achieved positive net flows overall,” the report says. “When excluding money market funds, however, that number dropped to one third.”
Guangzhou-based E Fund Management was in top spot with around 104 billion RMB of net inflows in the first quarter, followed by Shanghai-based Harvest Fund Management with around 40 billon RMB.
Shenzhen-headquartered Bosera Asset Management was the worst performer with around 70 billion RMB of net outflows.
Total fundraising in the primary fund market amounted to 284 billion RMB, up from 273.8 billion RMB in March 2022.
