Chinese Funds Issued 52% More Shares Last Month Amid Recovery
Xu Wei
DATE:  Jun 02 2020
/ SOURCE:  Yicai
Chinese Funds Issued 52% More Shares Last Month Amid Recovery Chinese Funds Issued 52% More Shares Last Month Amid Recovery

(Yicai Global) June 2 -- Some 115 new investment funds have popped up in China last month as the country's financial sector gradually overcomes the worst parts of the devastating Covid-19 pandemic.

These funds issued 172.2 billion shares, up 52 percent from the previous month, China Securities Journal reported today, citing data from Wind. Each of the newly established funds issued an average of 1.5 billion shares, a jump from April's 857 million.

Among the 115 collective investment vehicles, some 21 equity funds were formed, and these released 39.3 billion shares, a new high for this year.

The retail fund sector is optimistic about the future, Jia Zhi, analyst at Ping An Securities, told the same news source.

Moreover, valuations are attractively cheap. The Shanghai Composite Index has been fluctuating below 3,000 points, which is a good time to take a position, said a retail fund insider.

Mainland-listed shares are full of structural investment opportunities, said He Qifeng, fund manager at Huashang Fund Management. Fields such as medical, semiconductor, information technology, cloud infrastructure, and food pose a good outlook throughout this year, He added.

Older funds' fairly good performance may also have encouraged new-comers. Over the first five months of this year, actively managed stock funds that were formed before this year returned 10.6 percent and hybrid funds, which invest in stocks and bonds, 7.3 percent.

In the first five months of the year, some 540 new funds were established in China, compared with 373 during the same period of last year. The number of issued shares reached 801.7 billion, more than doubling from a year earlier.

Editor: Emmi Laine
 

Follow Yicai Global on
Keywords:   Fund,Stock