China Mutual Fund Closures Hit Record on Shadow Banking Purge
- Funds liquidation more than tripled from 2017 to over 600
- Crackdown on entrusted loans, stocks slump to blame: analysts
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China’s cleanup of its shadow-banking system is fueling a record number of liquidations in its $1.9 trillion mutual fund market.
More than 600 funds have been closed this year, surpassing all liquidations in the previous 12 years combined, data compiled by Bloomberg show. It’s also more than triple the total last year, representing a sharp rise in closures for a mutual fund market that has grown more than five-fold since 2011 in assets under management.