China this week – 16 Oct 15

Added 16th October 2015

A roundup of the week's asset management industry news from mainland publications.

China this week – 16 Oct 15

First ETF liquidation in China

An ETF managed by CS Fund has ceased redemption and subscription since October 14, 2015. This is first China-registered ETF to liquidate. The ETF, tracking the top 100 stocks by market capitalisation, is the fifth mutual fund to liquidate since August.

The fund, launched March 2013, had 20.4m yuan ($3.2m) in assets under management on June 30 this year, according to its latest disclosure. The fund returned 46.4% over the past year, but -19.6% in the past three months.

China Business News, October 15

Securities investor confidence resumes

The investor confidence index in September jumped to 51.3, or 24.2% up from a month ago. A reading above 50 on the index, compiled by China Securities Investors Protection Fund, means investors in general tend to be optimistic about the market.

The stock valuation index issued by the same company grew to 49.5 in September from 41.6 of August. A survey by the company found that 16% of investors believed the stock market was undervalued in contrast to 17% who thought the market was overvalued and 53% who thought pricing was reasonable.

Securities Daily, October 13

Four out of five QDII funds yield negative for the year

Only 27 out of 122 QDII funds (used by domestic investors for overseas investment) had positive returns in the first three quarters of the year. The average yield was -8.2%.

No new QDII quotas have been approved for six months since March. However, more mainland investors are seeking to allocate their wealth overseas in expectation of further yuan devaluation., October 12

Fund managers quit at unprecedented pace 

China’s asset management industry reported that 267 fund managers quit their jobs as of October 11, two times more than the same period last year. Managers have quit at an unprecedented pace and many of them have left for private equity firms.

At the same time, around 400 new fund managers have joined asset managment firms.

During the same period in 2014, the industry reported only about 200 new fund managers joining.

Securities Daily, October 12

China Southern AM CEO joins QHKY Fund

Luo Xindu, a mutual fund veteran, jumped ship to chair Shenzhen-based QHKY Fund’s supervisory board. Luo worked for 16 years with China Southern Asset Management, first as chairwoman of the supervisory board, then as CEO.

Prior to that, she was vice president of China Southern Securities, after quitting the Ministry of Civil Affairs.

Also headquartered in Shenzhen, China Southern is the parent company of CSOP Asset Management,

Securities Daily, October 12

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