(Yicai) Jan. 4 -- Chinese retail funds have dialed down their expectations for a “good start” to the new investment year due to volatile market conditions.

A marketing executive at a leading mutual fund company told Yicai that fund management firms and sales channels still attach much importance to their sales arrangements for a “good start,” but their expectations are not very high and they are being more cautious.

Seventy funds were open as of Jan. 3, with closing deadlines in early April, according to data provider Wind, with another 49 in the works for this month. Forty, or about a third, of all those in the pipeline are actively managed equity funds.

Fund companies also have relatively cautious expectations for new products, with planned fundraising periods ranging from five to 90 days, Yicai learned.

Actively managed equity funds were under pressure last year. Among the nearly 340 formed in 2023, just eight garnered CNY2 billion (USD280 million) compared with 19 in 2022, Yicai calculated.

Fixed-income products continue to support the new fund market. The marketing executive pointed out that the launch of new stable income-type fixed-income products is a true reflection of investor demand under volatile market conditions.

Industry insiders are also still optimistic about the Chinese stock market this year. Valuations and investor sentiment are low now and mainland-listed shares are likely to rebound despite volatility, Tang Xiaodong, general manager of macro strategies at Southern Asset Management, said to Yicai.

The market is picking up gradually, and innovative and strategic technologies are worth investors' attention, said Chen Xianshun, chief equity strategist at Bosera Funds.

Editors: Shi Yi, Emmi Laine