Chinese investors fled stock funds in July, seeking safe haven in bond and money market funds as share prices plunged, according to latest mutual fund data.
The number of units held in China's equity funds at the end of July was 18 per cent smaller than a month earlier, according to the Asset Management Association of China. This reflects heavy redemptions by investors during the month. The value of assets under management in stocks funds shrank by 27 per cent during the month to 1.296 trillion yuan ($202.59 billion). Investors also pulled out of balanced funds, which invest in both stocks and bonds, resulting in a 23 per cent slump in the number of fund units. In contrast, money market funds jumped by one-third in terms of fund units, while bond funds grew 15 per cent in size, representing their biggest monthly rise this year.
The shift of investor interest came as a stock market plunge that started in mid-June wiped out nearly one-third of the market value in just three weeks, prompting authorities to intervene with a slew of rescue measures.
The number of units held in China's equity funds at the end of July was 18 per cent smaller than a month earlier, according to the Asset Management Association of China. This reflects heavy redemptions by investors during the month. The value of assets under management in stocks funds shrank by 27 per cent during the month to 1.296 trillion yuan ($202.59 billion). Investors also pulled out of balanced funds, which invest in both stocks and bonds, resulting in a 23 per cent slump in the number of fund units. In contrast, money market funds jumped by one-third in terms of fund units, while bond funds grew 15 per cent in size, representing their biggest monthly rise this year.
The shift of investor interest came as a stock market plunge that started in mid-June wiped out nearly one-third of the market value in just three weeks, prompting authorities to intervene with a slew of rescue measures.