China's Plan to Spread Tech Wealth Fizzles With Delay of CDR
- Mutual funds set up to buy CDRs returned as little as 0.3%
- Funds have instead turned to bonds, money-market instruments
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China’s ambition to have its citizens profit from the nation’s publicly traded high-tech stars has been dealt another blow.
The six three-year mutual funds set up to invest in the China depositary receipts of such companies have shifted focus to low-yielding bonds instead, generating returns of as little as 0.3 percent since their inception, data compiled by Bloomberg show. That’s a double disappointment after the funds, established in early July and sold to institutional and retail investors, only raised about one third of their upper 300 billion yuan ($44 billion) limit.