Asset surge by China fund firms masks problems
The nation's mutual fund industry recorded 29% growth in AUM to $449 billion at end-2012, but look deeper and you'll find a market increasingly dominated by bank-backed managers.
China’s mutual funds industry saw AUM surge 29% in the final quarter to end 2012 at Rmb2.8 trillion ($449 billion), although this paints a deceptively rosy picture, finds Z-Ben Advisors.
The Shanghai-based consultancy notes that the rise was chiefly bolstered by firms’ annual tendency to raise year-end rankings by selling money-market funds (MMFs), rather than any incremental growth path.
Fund management companies (FMCs) saw more than Rmb200 billion in inflows into MMFs via orga…
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