China’s mutual fund industry reached an all-time high of 3.55 trillion renminbi (€420.8 billion) of assets under management, a 21% increase from the end of last year.
Shanghai-based consultancy Z-Ben Advisors says this is occurring against the backdrop of increased regulatory scrutiny of prevailing practices among fund management companies. Both mutual fund managers and individuals are increasingly under the watch of regulators.
Mutual fund managers also manage approximately 3 trillion renminbi in “non-core” capital, in addition to “public capital”, putting the total industry size comfortably above the 6.5 trillion renminbi.
In the first half of this year, 1,186 billion renminbi were held in active equity, 275 billion renminbi in passive equity, 80 billion renminbi in closed end funds, 1,957 billion renminbi in fixed income, and 52 billion renminbi in the qualified domestic institutional investor scheme.
Z-Ben Advisors notes that despite having hit a headline-making $1 trillion (€735.5 billion) mark, growth is almost entirely concentrated in money market funds.
At the same time, low-fee asset securitisation led to increases in non-core assets under management.
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