AuM in China's fund industry takes a knock

ChinaAssets under management (AuM) in China's fund industry fell roughly 5% to Rmb2.3trn (€244bn) between the first and second quarters of the year, after two years in which AuM barely moved, according to Shanghai-based consultancy Z-Ben Advisors.

Limited gains for new products failed to offset outflows from redemptions and capital depreciation caused by fund losses, said the firm, which notes that equity funds lost an average 7.14% in the past six months.

Despite the poor performance, product launches are at an all-time high. Z-Ben identified 107 funds launched in the first half of the year compared with 70 for the same period in 2010.

“The fact that industry AuM has barely moved within the last two years is not lost on many industry observers, who rightly question whether keen interest on the part of newcomers … may seem out of place,” said the firm.

Many domestic analysts are predicting an upturn in equity performance for the second half of the year, which could help AuM recover and even overtake its former high point.

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