A sample of 1,644 funds under 71 major fund companies in China realized profits of 193 billion yuan (32 billion U.S. dollars) in the third quarter this year, their highest since the second quarter of 2011, according to reports in Friday's financial papers.
TX Investment Consulting Co., the Chinese fund consulting company that provided the figures, said equity-focused funds were the main contributor to the growth, with these and hybrid funds accounting for 94 percent of the total profit.
Zenglibao, a money fund offered by Tianhong Asset Management Co. on Yu'ebao, Alibaba's recently launched wealth management product, has become the largest public offering fund in China with a total collection of 56 billion yuan by the end of September.
The figures provide a ray of light for the average fund position on China's stock market, which has become a cause for concern. In the third quarter, the funds held by the sample increased 82 percent, up 5 percentage points quarter-on-quarter.
There are two main reasons for the hikes, according to Friday's Shanghai Securities News. On the one hand, the stock market rebounded in the third quarter. On the other hand, bouts of profit taking have afflicted many funds, it said.
Commenting on the outlook for the stock market in the fourth quarter, the China Securities Journal said that reform and innovation will be the most significant investment themes in the secondary market, citing research by the selected and balanced hybrid fund owned by the Bank of China Investment Management Co. Ltd.
Source: Xinhua
