The assets of China's booming mutual fund market surged to a
record high in 2006, said an industry report.
Several types of mixed fund -- an investment fund including both
equities and bonds -- jumped between 95.15 to 124.74 percent in
2006, said Lipper, a fund rating agency in its latest analytical
report.
The whopping growth rate -- well above the global average -- was
fueled by the bullish stock market which broke out of its four-year
slump last year, the report said. The Shanghai Composite Index
registered a 130.43 percent rise last year and the Hushen 300 Index
was up 120.02 percent.
The total market value of mutual funds rose 83 percent from
US$60 billion at the beginning of 2006 to more than US$110 billion
by year end, according to figures released by Z-Ben Advisors, a
research institute.
But Zhou Liang, a senior Lipper research analyst, warned fund
investors to beware of the risks involved as huge amounts of
capital flood the market.
(Xinhua News Agency January 13, 2007)