The assets of China's booming mutual fund market surged to a record high in
2006, said an industry report.
Several types of mixed fund -- an
investment fund including both equities and bonds -- jumped between 95.15 to
124.74 percent in 2006, said Lipper, a fund rating agency in its latest
analytical report.
The whopping growth rate -- well above the global
average -- was fueled by the bullish stock market which broke out of its
four-year slump last year, the report said. The Shanghai Composite Index
registered a 130.43 percent rise last year and the Hushen 300 Index was up
120.02 percent.
The total market value of mutual funds rose 83 percent
from 60 billion U.S. dollars at the beginning of 2006 to more than 110 billion
U.S. dollars by year end, according to figures released by Z-Ben Advisors, a
research institute.
But Zhou Liang, a senior Lipper research analyst,
warned fund investors to beware of the risks involved as huge amounts of capital
flood the market.
(For more biz stories, please visit Industry Updates)