China this week - 30 Oct 2015

Added 30th October 2015

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

China this week - 30 Oct 2015


Three QDII gold funds yield 9% in past three months

The net asset value of three gold QDII funds (used by domestic investors for overseas investment), managed by Lion Fund, Efund and Harvest, grew 9.76%, 9.91% and 9.91%, respectively, from August 1 to October 26.

Each of the three funds allocate more than 90% of their assets into gold funds. The three funds are expecting the gold price to top $1200 in the fourth quarter amid expectation of an interest rate hike in the US.

Security Times, October 29

QDIE get $1.5bn in new quota

Shenzhen approved $1.5bn of new quota for the Qualified Domestic Investment Enterprise pilot programme. The QDII-like program, with a total quota of $2.5bn, allows investments in overseas private equity, hedge funds and properties, while the QDII program is limited to securities investment.

Shenzhen, which has ambitions to become China's finance center, also licensed 17 companies for the program, in addition to the eight when QDIE was launched earlier this year. The newcomers include Ping An Fund and Ping Trust., October 29

Asset Management Association appoints new head

Hong Lei replaced the retiring Sun Jie to head the Asset Management Association of China. Sun was the association's first director after its foundation in 2012.

Hong previously led the CSRC's fund department where he pushed for the opening of fund distribution to privately-owned, third-party companies. Prior to the CSRC, Hong was a founding member and chief manager of Harvest Fund, where he supported value investment and took a stand against insider trading when such conduct was the norm for the fund industry in the early 2000s.

China Securities Times, October 29

Mutual funds lose $100bn in Q3

China’s 100 listed mutual fund houses lost 635bn yuan ($100bn) in the third quarter.

Only 16 firms had a profit for the quarter, with the best performer Tianhong Asset Management, reporting 3.2bn yuan.

Among the worst performers were Fullgoal, which lost 62.4bn yuan, Efund, which lost 44.4bn yuan, and Harvest, which lost 40.5bn yuan.

The results are in contrast to the 350.8bn yuan ($55.3bn) in aggregate profit for the firms during the second quarter., October 28

September better for China’s mutual funds

The net asset value of mutual funds grew 0.84% to 6.69trn yuan in September compared to the previous month.

The funds' total assets were 7.11trn yuan ($1.12trn) at the end of June, but fell to 6.64trn yuan by the end of August after the stock rout.

Equity funds have yet to reverse the downward trend, with the aggregate net asset value shrinking to 633bn yuan at the end of September, 12.6% down from the prior month and down 50% from the end of July.

The net asset value of money market funds totaled 3.67trn yuan at the end September, up 5.4% from a month ago., October 23 

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