SHANGHAI, Jan 19 Reuters A Chinese mutual fund attracted a record 37 billion worth of investor subscriptions on the first day of sales, state media reported, reflecting Chinese retail fever toward stocks.
E Fund Management Co launched the fund on Monday and raised 237 billion yuan 36.6 billion in subscription money, nearly 16 times its fundraising cap of 15 billion yuan, official Securities Times reported on Tuesday, citing sales channels. E Fund said official data will be released soon, without giving figures.
The demand reflects Beijings success in boosting investor confidence in capital markets following a series of reforms, and points to more momentum in Chinas bull run that saw the bluechip CSI300 index jump 27 in 2020.
It also highlights growth potential for Chinas roughly 3 trillion mutual fund industry, which was fully open to foreign investors last year. Global fund managers need to know just how significant the opportunity is. This is the perfect demonstration, said Peter Alexander, managing director of fund consultancy ZBen Advisors, which forecasts Chinas mutual fund market will triple in a decade.
E Funds new product will put 6095 of assets in stocks. The fund can also invest up to half of its equity portfolio in Hong Kong shares.
Chinese investors are pouring money into stocks through funds as the benchmark CSI300 flirts with record highs amid signs of a strong economic recovery.
Chinas economic growth accelerated to 6.5 in the fourth quarter, and is…