China-focused equity funds on course for weakest performance in three years

Overseas equity funds with exposure to Chinese equities are on course to deliver their weakest performance in three years, as the stocks were hit by an economic slowdown, a tech crackdown and an increase in default risks in the property sector.

Refinitiv Lipper data showed that China-focused overseas equity funds have shed 9.2per cent on average so far this year. They delivered a return of 47.1per cent and 33.3per cent in 2020 and 2019 respectively, the data showed.

Profunds UltraChina ProFund;Investor, BCAP China Technology, TMB China Opportunity and MTF TR (E) Bluestar China Internet Software (4D) were leading the decliners this year, dropping more than 25per cent each so far this year.

China’s Shanghai Composite index has gained just 3.45per cent this year, and is the fourth worst performer among Asian stock markets this year, based on Refinitiv Lipper data.

“Major regulatory reforms collided with a potential default scenario with some of the largest property developers after the country tightened its funding sources,” fund research group Morningstar said in a report.

“The regulatory consolidation in China swept up large e-commerce and education names. It comes as no surprise that Greater China-focused funds saw a deep drawdown,” it said.

Similarly, China-focused overseas bond funds have risen just 0.4per cent on average, compared with a gain of 8.5per cent in 2020.

Among bond funds, HSBC China High Yield Bond Fund Acc TWD, BEA Union Investment China High Yield Income A USD Dis and Jih Sun China High Yield Bond Fund A TWD led the decliners this year, based on Refinitiv Lipper data.

Z24 News

Leave a Reply

Your email address will not be published. Required fields are marked *

Next Post

Apple warns Thai activists 'state-sponsored attackers' may have targeted iPhones

Wed Nov 24 , 2021
BANGKOK: Apple on Wednesday (Nov 24) issued alert messages to at least six Thai activists and researchers who have been critical of the government, warning it believed their iPhones had been targeted by “state-sponsored attackers”, according to activists and the alerts reviewed by Reuters. Apple and Thailand’s Digital Ministry did […]


Social menu is not set. You need to create menu and assign it to Social Menu on Menu Settings.