China’s Mutual Funds Take Beating Amid Capital Market Rout

The capital market rout in 2022 sank the returns of China’s mutual fund products into the red, reversing a three-year streak of positive returns and pushing some fund managers to shuffle their positions.

Last year, the total net loss from Chinese mutual funds’ investments reached 1.47 trillion yuan ($218.6 billion), the largest since 2008, when a stock market meltdown amid the global financial crisis wiped off the boom of a two-year bull run, according to data compiled by Caixin based on fund companies’ annual reports. The net returns on mutual fund investments from 2019 to 2021 were 1.18 trillion yuan, 2 trillion yuan and 714.9 billion yuan, respectively.