Chinese mutual fund firms buy into their own new funds amid market volatility
In short
Several Chinese public fund managers have put their own money into newly launched funds amid recent market volatility, China Securities Journal reported on October 9. Gongyin Ruixin Fund (工银瑞信基金) and its wholly owned subsidiary subscribed more than 45 million yuan to a construction machinery ETF, and in the third quarter fund firms invested over 1.4 billion yuan of their own money to set up more than 120 sponsor-initiated funds.
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Several Chinese public fund managers have used their own money to buy into newly launched funds amid recent market volatility, China Securities Journal reported, in a story carried by CLS, Yicai and 36Kr on October 9. Gongyin Ruixin Fund (工银瑞信基金) and its wholly owned subsidiary together subscribed more than 45 million yuan to a construction machinery ETF, 工程机械ETF工银. Xingzheng Quanqiu Fund (兴证全球基金) subscribed 10 million yuan each to Xingquan Hechen (兴全合辰) and Xingquan Youjia (兴全优加), while Dacheng Fund (大成基金), Jingshun Changcheng Fund (景顺长城基金) and Boshi Fund (博时基金) bought into their own new "fixed income plus" products. [ 1 , 2 , 3 ]
The report said public fund firms also invested more than 1.4 billion yuan of their own money in the third quarter to set up more than 120 sponsor-initiated funds, putting money into directions they favour. According to people in the industry cited by the reporter, the recent self-purchases help new products raise money and launch in an adverse market, and also take advantage of a favourable moment to position against the trend. Industry institutions said a barbell strategy is likely to remain favoured in the short term, and suggested attention to stable styles such as large financials as well as small and mid-cap tech growth. [ 1 , 2 , 3 ]
Why it matters
According to the report, people in the industry say the self-purchases help new products raise money and launch in a weak market, while also letting managers position against the trend. The report was carried by financial and tech outlets as investment-market news.
Key facts
- Gongyin Ruixin Fund (工银瑞信基金) and its wholly owned subsidiary together subscribed more than 45 million yuan to a construction machinery ETF, 工程机械ETF工银. [ 1 , 2 , 3 ]
- Xingzheng Quanqiu Fund (兴证全球基金) subscribed 10 million yuan each to its funds Xingquan Hechen (兴全合辰) and Xingquan Youjia (兴全优加). [ 1 , 2 , 3 ]
- Dacheng Fund (大成基金), Jingshun Changcheng Fund (景顺长城基金) and Boshi Fund (博时基金) also bought into their own new "fixed income plus" products. [ 1 , 2 , 3 ]
- In the third quarter, public fund firms invested more than 1.4 billion yuan of their own money to set up more than 120 sponsor-initiated funds. [ 1 , 2 , 3 ]
- Industry institutions expect a barbell strategy to stay favoured in the short term, pointing to stable styles such as large financials and to small and mid-cap tech growth. [ 1 , 2 , 3 ]
Confirmed by several sources
- Nothing is confirmed by two independent outlets yet.
Still unclear
- When exactly the individual self-purchases took place. The report says only that they happened recently and gives no dates.
- How much Dacheng Fund, Jingshun Changcheng Fund and Boshi Fund invested. The report names these firms but gives no amounts for them.
- Gongyin Ruixin Fund and its wholly owned subsidiary subscribed more than 45 million yuan to a construction machinery ETF. Reported by a single source so far
- Public fund firms invested more than 1.4 billion yuan of their own money in more than 120 sponsor-initiated funds in the third quarter. Reported by a single source so far