In Depth: What’s Worrying Regulators About China’s Mutual Fund Boom

China’s mutual fund market has seen rapid growth in the past few years, thanks to retail investors’ increasing affluence and the ease that new streamlined sales channels bring — allowing people to make purchases with merely a few clicks on their smartphones.

As of December, total assets under management (AUM) in mutual funds reached 26.03 trillion yuan ($3.85 trillion), almost doubling the amount three years earlier, data compiled by the Asset Management Association of China (AMAC) show.