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Local mutual fund investments top US$110bn

The value of China's domestic mutual funds has passed US$100 billion for the first time on the back of strong stock markets and renewed spending on equity products, the <i>Financial Times</i> reported. According to research by Z-Ben Advisors, domestic mutual fund assets jumped 83% from US$60 billion at the start of 2006 to US$110 billion at the end of December. The 24 foreign-invested joint venture funds accounted for nearly 40% of the market, up from 25% at the start of 2006. Harvest, in which Deutsche Bank has a 19.5% stake, was the biggest fund manager by assets at the end of last year. Invesco's joint venture, the Great Wall Domestic Demand fund, was the second largest of the foreign-invested funds, generating a return of 182% in 2006. A record US$17 billion of new money, withdrawn from bank accounts in order to cash in on an A-share market that grew 130% last year, flowed into the funds.

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