Investors keep faith in China

In early 2007 investors, who had rewarded the performance of China's equity markets the previous year by steering over $5.7bn (Rmb 38.6bn, €4.54bn, £3.8bn) into China equity funds, quickly reversed course. While the MSCI China Index continued upwards, investors pulled over $5bn out of these funds between mid-February and the first week of September. It proved to be a prescient move. In November, Chinese investors began questioning valuations, triggering a correction that saw the index slide 51% during 2008.

China Confidential Funds

China Confidential Funds, a new research service launched by FT China Confidential, is dedicated to illuminating the mainland fund industry. Our team of fund industry experts in Shanghai search out the interesting trends in fund performance, strategy, interactions with overseas funds, regulatory changes, distribution and management. We also use a proprietary system to track the emerging flows of Chinese money. Click here to find out more.

Other Articles on this Issue

• Financial China

  Selected Financial Charts

  ABC – a real charmer, but for how long?

• Macro View

  Easy does it

• The Big Call

  Underground banks – lifeblood of the private sector

• The Best of Chinese Commentators

  A second stimulus

  Inflation pressures?

• Funds Data

  Taiwan funds buck downwards trend

• Consumer China

  Private education – changing needs

  China Education Alliance – vocational courses drive growth

  ChinaEdu – graduate oversupply erodes revenues

  China Distance – some way to go

  ATA failing the test

  New Oriental – fighting on

• Capital Intensive China

  Property doom and gloom overblown?

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