Mutual funds see massive annual growth

The net assets of China’s mutual funds nearly quadrupled in 2007 to reach US$453 billion, up from US$117 billion a year earlier, AFP reported. The figure came from a report in China Securities Journal, which in turn cited domestic brokerage Galaxy Securities. The publication also referred to a survey carried out late last year, which found that 83% of 14,800 respondents named mutual funds as their first choice of wealth management products. This corresponds to analysts’ accounts of Chinese investors turning away from bank deposits in favor of the potentially more lucrative returns to be gained from stock market exposure. The Shanghai Composite Index rose 97% overall in 2007 despite falling 18% in November, its biggest monthly decline since July 1994.