Market Trends of China Mutual Funds Industry
Growth of Stock or Equity Funds is Driving the Market
Chinese markets are also experiencing a shift in consumer attitudes towards financial instruments and away from holding individual stocks, real estate, and bank deposits. China's capital markets are experiencing a transformation, with global holdings of Chinese stocks and bonds already jumped by about US$120bn in 2021 and still growing rapidly to cater to the demands for new asset allocation and diversification.
Population demographics and wealth creation in China have not only led to domestic advances in the financial instruments available. Still, they have also had the knock-on effect of attracting more foreign investment to meet the needs of a growing and eager consumer base.
Growth in Mutual Fund Assets
Since 2013, China has consistently ranked second in the world for the value of assets owned by mutual funds. In 2021, the total net assets of China mutual funds were over 3.53 trillion dollars, a significant increase from the year before.
The asset size of the mutual fund (MF) industry increased due to the robust performance of the equity markets and net inflows to equity schemes. From 2018 to 2021, the China Mutual Funds industry experienced significant growth. Compared to 2018, the industry grew at a rate of 99.44 percent in 2021.
