Chinese mutual funds snapped up in buying spree
New offerings sold out in days as surging stock market bolsters investor confidence
The mainland's once-struggling mutual fund industry is cashing in on the country's surging stock market, with new funds snapped up in days by investors who long shunned shares as too risky.
This marks a success for policymakers working to build confidence in equities and a relief for the mainland's fund management industry.
But the influx will keep the pressure on Beijing to prevent the rally from imploding.
Collapses in 2007 and 2009 made many people swear off stocks for years.
In January and February, 75 funds, mostly equity-focused or balanced ones with both equity and bond investments were launched, raising nearly 110 billion yuan, (HK$139 billion), according to Shanghai-based fund consultancy Z-Ben Advisors.
It said 35 funds, collecting less than 50 billion yuan, were formed in the same period last year.
The market's huge gains - more than 50 per cent last year and about 13 per cent this year - have revived enthusiasm for mutual funds.