China’s fund managers are failing to attract investors, according to recently released figures on mutual fund sales.
According to data from consulting firm Z-Ben Advisors, newly launched mutual funds raised RMB 432.1 billion (US$ 61 billion) in the first five months of 2023.
This represents the lowest sales figures since 2019 and includes the years when the market was affected by the restrictions caused by the Covid-19 pandemic.
The slump has been ascribed to a bearish retreat from equities by China’s retail investors. According to Z-Ben, the demand for active equity products is especially weak.
A research note from a Goldman Sachs economist confirms a weakened appetite for Chinese equities among investors.
According to the Wall Street firm’s chief Asia-Pacific economist Andrew Tilton, “investors have looked elsewhere in the region for opportunities” amid China’s market challenges.
The respective stock markets of Japan, South Korea and India have all been beneficiaries of investors’ wariness towards Chinese stocks.
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