By Bloomberg News - Jul 21, 2010
China’s mutual funds posted their third-biggest quarterly loss as the nation’s stock market slumped the most in Asia, TX Investment Consulting Co. said.
The country’s 652 funds had a combined loss of 351.4 billion yuan ($51.8 billion) in second quarter, the investment consulting firm said on its website today. The funds lost 668.8 billion yuan in the first quarter of 2008 and 413.9 billion yuan for the following three months, it said.
China’s benchmark Shanghai Composite Index slid 23 percent in three months through June, its biggest quarterly decline since March 2008, after the government intensified measures to curb inflation and housing speculation, and on concern Europe’s sovereign debt crisis would damp demand for overseas shipments. The drop was the most among 93 benchmark indexes worldwide after Greece, Cyprus and Kazakhstan.
TX Investment said 366 funds reduced their stock positions by 8.7 percentage points from the first quarter to 73.25 percent. All of China’s 60 asset management firms sold more shares than they bought, cutting equity positions by an average 10.23 percentage points in the second quarter, said Howbuy, which compiles and provides data on mutual funds, in its quarterly fund report.
Huashang Fund Management Co. and Soochow Asset Management Co. ranked first and second in terms of returns in the second quarter according to Howbuy, lost at least 6.3 percent.
--Zhang Shidong. Editor: Linus Chua, Allen Wan
To contact Bloomberg News staff for this story: Zhang Shidong in Shanghai at +86-21-6104-7014 or szhang5@bloomberg.net
From Bloomberg News published on Jul 21, 2010