(China Alert) Public mutual funds: Resilience through headwinds
- mutual fund
-Public mutual fund AUM, excluding QDII products, grew 8% in 2016
-Bond funds were the biggest winner of both the fourth quarter and the year
Update: As most other investment management markets were shaky to say the least this year, China’s mutual fund industry has grown 8% to RMB9tr (USD1.3tr) in 2016 (and we have deliberately excluded strong QDII demand from these numbers). That’s not to say it was a smooth ride. After the stock market rollercoaster of 2015, 2016 proved to be a year of resilience for the mutual fund industry, with two flavors of volatility at the start and the end. Resilience was helped in no small part by institutional inflows, most evident in fixed income product fundraising. Z-Ben Advisors projects that further institutional inflows in 2017 should extend this resilience and mutual fund AUM should reach RMB10tr (USD1.4tr) by the end of the year.
Z-Ben Analysis
A liquidity crunch saw out the year but has not deterred the broader demand that …
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