| | | | | The combined size of mutual funds managed by overseas institutions to trade yuan shares jumped by more than 40 percent last month as investors poured into the market which was bottoming out, an industry report disclosed yesterday.
The cumulative size of the 19 funds under the Qualified Foreign Institutional Investor (QFII) scheme reached US$8.4 billion as of April 30, against US$5.95 billion yuan a month before, fund research firm Lipper said.
The average return of QFII funds was about 3 percent in April, versus a loss of 0.28 percent for domestic equity-investment funds, according to the report by Lipper, a unit under Thomson Reuters.
''Foreign investors stepped in when the mainland market tumbled 50 percent and amid growing calls for government supportive policies'' the report said. ''QFII funds won in capturing the sentiment and timing.''
The Shanghai Composite Index fell to below the key 3,000 point last month, prompting the central government to roll out stimulus policies like a stamp duty cut.
The index rebounded later on the positive measures, closing the month up 6.4 percent. Analysts said that the 3,000-point level is seen as the base for the index and a gradual up-trend is anticipated.
Mutual funds run by Chinese entities to trade overseas stocks under the Qualified Domestic Institutional Investors scheme earned an average return of 5.67 percent last month, cutting their average loss this year to 12.01 percent, Lipper said.
This showed the more competitive global markets faced by fund managers. |
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