Chart of the Day: Value of China’s Mutual Funds Comes Down From Peak

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Total assets under management (AUM) of China’s mutual funds fell to 31.51 trillion yuan ($4.42 trillion) as of the end of October, coming down from a record high a month earlier, industry data showed.

The figure was down 1.75% from 32.07 trillion yuan as of the end of September, according to the Asset Management Association of China (AMAC).

China’s Mutual Fund Market Falls From Record

AMAC figures show that mutual funds that focused on bonds or invested in a mix of assets that included bonds lost 11.8% and 4.3% month-on-month in AUM. Meanwhile, stock-focused mutual funds dipped 0.13%.

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China's mutual funds AUM fell 1.75% to 31.51 trillion yuan ($4.42 trillion) by the end of October from September's record high.
Bond-focused and mixed-asset funds declined by 11.8% and 4.3% respectively, while stock-focused funds dropped 0.13%.
Analysts expect mutual fund growth to shift back towards stock-focused funds with upcoming economic stimulus policies.

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Who’s Who

First Seafront Fund Management Co. Ltd.: First Seafront Fund Management Co. Ltd. is highlighted in the article through its chief economist, Delong Yang, who noted that mutual fund growth was previously driven by bond-focused funds. Yang expects future growth to shift towards stock-focused funds, particularly as economic stimulus policies are implemented and the stock market improves.

E Fund Management Co. Ltd.: E Fund Management Co. Ltd.'s index research department's general manager, Pang Yaping, expects growth in demand for wealth management among households with the stabilization and recovery of the macroeconomy. Pang anticipates that mutual funds will continue to scale up as an investment tool due to their high transparency, low investment thresholds, and high liquidity.

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What Happened When

By the end of September 2024：: Total assets under management (AUM) of China's mutual funds reached 32.07 trillion yuan.

As of the end of October 2024：: Total assets under management (AUM) of China's mutual funds fell to 31.51 trillion yuan.

Monday, December 9, 2024：: The Politburo announced a more proactive fiscal policy and a shift to a 'moderately loose' money policy, moving away from the 'prudent' stance maintained for the past 14 years.

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