In Q2 2023, China's financial sector underwent a robust rebound, with net flows reaching a notable RMB 1,226 billion, the highest since Q1 2021.
These were the findings of a new report by IIC Analytics, titled 'IIC Analytics: China fund flows (2Q23)', which added that the prevailing trend favoured low-risk allocations.
Bond funds surpassed MMFs, indicating the market's conservative sentiment. While active equity strategies faced challenges, passive equity and bond funds drew significant inflows.
Balanced funds experienced their fifth consecutive quarter of outflows. However, the top 30 managers by AUM mostly registered positive net flows, demonstrating resilience in these volatile times.
The slower economic recovery and the absence of strong fiscal stimulus have driven investors toward safer alternatives. Bond funds led the investment avenues, with balanced funds accounting for about 17% of the investments.
High-risk avenues, such as active equity, faced declines. Passive equity and bond funds returned after prior outflows, underscoring a trend of risk-aversion among investors. Despite the Pillar III program's growth, FoFs struggled to achieve positive net flows.
In fund management for Q2 2023, ChinaAMC led with RMB 72bn, followed by Maxwealth at RMB 57bn. Southern and E Fund each secured RMB 56bn, with Bosera close behind at RMB 54bn.
Conversely, CCB Principle reported -RMB 17 billion, Zhongrong -RMB 5.6bn, Manulife -RMB 4.1bn, Yingda -RMB 3.7 billion and Franklin Templeton Sealand -RMB 3.2 billion.
©2023 funds global asia 
At times like these, HSBC Asset Management easily pivots towards emerging markets.
The spotlight on growth markets and the need to be nimble and dynamic is ever-sharper, given the difficulty in predicting monetary policy in the world’s major nations.
A comprehensive, cost-effective, and transparent currency overlay hedging solution is crucial to mitigate FX exposure risks in the complex landscapes of Japan and China's FX markets, explains Hans Jacob Feder, PhD, global head of FX services at MUFG Investor Services.
Ross Dilkes, fixed income portfolio manager at Wellington Management, examines the opportunities and risks for bond investors presented by the region’s decarbonisation agenda.
Shareholders in Japan no longer accept below-par corporate governance standards. Changes are taking place, but there are still areas for improvement, says Tetsuro Takase at SuMi Trust.
Robert St Clair, head of investment strategy at Fullerton Fund Management, explores the reasons investors should be paying attention to the rising demand for healthcare in China.
China's internet market presents one of the most compelling long-term growth potentials for investors today, given the catalysts supporting the sector from both macro and fundamental perspectives, explains Dr Xiaolin Chen, head of international, KraneShares.
