China’s Love for New Mutual Funds Cools After Tough Year
- Fourth-quarter demand is set to be lowest since 2019
- Gauge of stock funds has muted return after two stellar years
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A tumultuous year for Chinese markets looks to be finally weighing on demand for new stock funds.
While equity funds have raised 2 trillion yuan ($314 billion) this year -- matching 2020’s record -- fundraising this quarter is poised to be the slowest in two years, according to data from consultancy Z-Ben Advisors Ltd. Launches have slowed through the year as economic recovery loses steam and China’s crackdown on private enterprise dampens sentiment.