·Chinese public MF AUM fell 5.6% to RMB6.7tr (USD1.06tr)

·MMFs received large inflows at the expense of equity products

·Non-core business continues to surge, piling on competitive pressure

Update: Chinese public mutual fund AUM fell from RMB7.1tr (USD1.1) to RMB6.7tr (USD1.06tr, -5.6%) in the third quarter. FMCs are still keenly feeling the effects of equity volatility. Success was achieved through diversified product shelves that played to market conditions: MMFs once again not only anchored AUM but now make up 55% of industry assets. This quarter’s flows provide insight for prospective MRF participants and shed light on structural changes across the entire industry. This includes the growth of the often risky FMC non-core (including subsidiaries) segment, of which AUM now tops at RMB10.2tr (USD1.6tr) after a RMB1.1tr (USD173bn) climb last quarter. Z-Ben Advisors believes these changes will define the mainland competitive landscape over the next six months.

Investors continued to run from equity, with some segments within the asset class remaining more resilient than others. Classified funds were decimated by outflows once again, losing upwards of…

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