China’s mutual fund managers are making money again after delivering grim reports in 2022
- More than 99 per cent of equity funds in China have made positive returns this year, a stark contrast with the slump in 2022
- Money managers say to look past short-term volatility in the market and pick up stocks on dips
China’s mutual fund managers are relishing the market’s best start to a year in almost three decades, as Chinese equities became the hottest asset in the global marketplace. That will go some way to soothe the pain in 2022.
More than 99 per cent of the 2,209 equity funds recorded positive returns so far this year, with the best of the lot chalking up 15 per cent gain, according to data compiled by Eastmoney. Only six funds were in the negative, with the worst performer recording a 1.5 per cent setback.
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“Major headwinds, including Covid curbs, property policies and regulatory environment, have all diminished considerably,” Zhang Kun, who manages US$12.3 billion at E Fund Management in southern Guangdong province, said in his latest report to clients on Friday.
While the market will definitely experience instability from time to time, investors should look past those fluctuations, he said. Some quality stocks are still relatively cheap and “have high odds of delivering higher returns to long-term investors”, he added.