Thinking long-term in China’s short-term market
Which fund has been (until recently) handling China equity investment the best over the past decade?
In terms of performance, it’s the Open Door Capital Group China A Fund, which returned 431% over the past ten years, according to FE data.
For five-year performance, the BNPP Flexi Equity Small Caps China A I EUR fund has been the top performer with a 93.7% return.
The fund returns are cumulative and limited to China equity funds for sale in either Hong Kong or Singapore.
Looking at the short term, not a single China equity fund recorded positive returns during the past three months, FE data shows.
Fund Selector Asia, September 24
CSRC to push QDII funds investing in China
The CSRC is revising the regulation on QDII (now only used by domestic investors for overseas investment) in order to push for QDII funds that invest both in overseas and domestic markets, said Li Haichao, deputy director of CSRC’s fund administration department, during an industry forum, without elaborating on the specifics.
China Securities Times, September 23
China to raise UK RQFII quota, explore stock connect
China agreed to offer more quota to British institutions, and it will carry out a feasibility study with the UK on a possible stock connect program between London and Shanghai.
British institutions now have 21.2bn yuan ($3.3bn) of RQFII (used by foreign investors to channel capital raised in Hong Kong directly into China's market) quota, out of a total of 404.9bn yuan of quotas granted to 138 entities by August 28.
China Business News, September 21
Equity and blend funds return 11% in the year
Returns of blend funds and equity funds have averaged 10.6% year-to-date (September 17), according to financial data service Wind. An environment-themed fund of Fullgoal tops the rank with a yield of 121%. The blend fund was launched August 2011.
China Fund, September 21
Investors reroute from equity to bond funds
Since the beginning of the third quarter, 156 bond funds have halted subscription or set a cap on subscription, as investors turn from equity funds to bond products after the recent stock rout. Only 56 bond funds suspended subscription in the second quarter. The AUM of bond funds reached year high of 454.7bn yuan ($71.2bn) by the end of August, 11.9% up from a month ago.
China Fund, September 21
QFII fund NAV drops 12.6% in August
In August, the net value of QFII funds (used by foreigners to invest in mainland China market) on average declined 12.6%, while the Shanghai composite index slumped 12.5%. Net value of DQII funds dropped 3.8% in August.
China Securities Times, September 18