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New equity funds in China raise over RMB500 bln via initial offerings this year

May 25, 2020


Abstract : New equity funds including stock funds and hybrid equity funds in China raised 512.35 billion yuan via their initial offerings by May 23 this year, reported Securities Times Monday.

BEIJING, May 25 (Xinhua) -- New equity funds including stock funds and hybrid equity funds in China had raised 512.35 billion yuan via their initial offerings by May 23 this year, reported Securities Times Monday.

The figure came into being thanks to the advent of a star product, E Fund balanced growth stock fund, last Friday when its manager E Fund Management Co., Ltd. announced the fund product raised 26.967 billion yuan on the day, ranking the fourth in terms of funds raised via initial offerings for actively managed equity funds.

This cast a spotlight on the current and previous market favor towards equity funds during January and February this year, which kept driving up sales of equity funds.

As the newspaper reported, 306 equity funds including both stock funds and hybrid equity funds were issued by May 23 this year, raising 512.35 billion yuan in total, which averaged more than 1.6 billion yuan for each of the equity fund.

Analysts attributed the splendid sales of equity funds to their performances outrunning the CSI 300 Index amid the stock market volatility.

In 2019, average returns of actively managed stock funds and hybrid equity funds mainly investing in stocks outperformed the CSI 300 Index by about 10 percent. CSI 300 Index consists of the 300 largest and most liquid A-share stocks and aims to reflect the overall performance of China A-share market, 

Even in the past months of this year, performances of equity funds were better than the CSI 300 Index, revealing the growing investment insight of institutional investors in China.

Recent years, more and more mid- and long-term investors rushed to invest in equity funds, which became an important part among China's A-share market investors.

Statistics with Wind Info, a financial data provider, showed that the market capitalization of A-share market stocks held by institutional investors reached 30.5 trillion yuan last year, up 31.2 percent over 2018. Those held by publicly-offered funds totaled 2.4 trillion yuan in market capitalization, up 64 percent year on year.  (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)

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