China Flows Into New Stock Funds Plunge to Lowest in Decade
- Stock funds raise $21 billion of new portfolios up to November
- Total is about half of 2022 total as investors keep cash
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Chinese retail investors are turning their backs on mutual funds, disillusioned with their once-preferred investment vehicles’ performance and preferring to hoard cash.
The amount of money that mutual funds raised this year has plummeted to the lowest in a decade, according to data from consultancy Z-Ben Advisors Ltd. The 152 billion yuan ($21 billion) worth of new portfolios issued up to end-November is about half of last year’s total and marks a third consecutive annual drop. That’s a major shift from 2020, when retail investors rushed to hand over their savings to professional stock pickers.