Chip sell-off helps boost China’s private funds as US$83.3b is pulled out of mutual funds
The assets managed by China’s private funds grew last month as those of its mutual funds shrank, with investors diversifying their portfolios amid a sell-off of semiconductor shares. The net assets under management (AUM) of domestic mutual funds shrank by 560 billion yuan (US$83.3 billion), or 1.4 per cent month on month, in July to 39.11 trillion yuan, according to data released by the Asset…
In July, China's private funds saw a surge in assets under management, growing to a record 25.73 trillion yuan, an increase of 8.7 percent month on month. This growth contrasted sharply with a decline in assets under management of domestic mutual funds, which shrank by 560 billion yuan, or 1.4 percent, to 39.11 trillion yuan. The decrease in mutual fund assets ended a four-month streak of growth, with the previous month's total reaching a record high of 39.67 trillion yuan.
The slump in the semiconductor sector, particularly in Shanghai's Star 50 Index, which fell nearly 26 percent in July, played a role in the shift. Despite this, the Star 50 Index remains up 24.36 percent so far this year, while the broader CSI 300 Index has fallen 2.68 percent. Private funds, especially those investing in unlisted equities, expanded by 570 billion yuan, or 0.5 percent month on month, to 11.93 trillion yuan.
However, the net worth of domestic mutual equity funds declined 0.9 percent month on month to 4.99 trillion yuan. Mixed-asset fund AUM fell 18 percent in July to 3.8 trillion yuan.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
