China Retail Investors Shun Equity Funds as Stocks Stumble
- Equity mutual funds see little inflow at start of 2022
- Analysts say investor interest may pick up after bonus season
Aan electronic screen displaying the Shenzhen Component Index in Shanghai, on Jan. 6.
Source: VCG/Visual China Group?Getty Images
This article is for subscribers only.
A choppy start to the new year for Chinese stocks is driving investors further away from equity mutual funds.
New equity-focused funds raised 9.6 billion yuan ($1.5 billion) in the first nine days of 2022, just a 10th of what was seen in the year-earlier period. Retail sentiment toward stock funds has soured since demand peaked in early 2021, as a volatile regulatory environment and uncertain economic outlook dampened appetite for risk assets.