Chinese 100 yuan banknotes are seen in a counting machine at a bank in Beijing. (Photo: Agencies)
BEIJING - China is set to see a record level of money raised by newly established mutual funds this year as the country's capital market reform facilitates more institutional investments, data showed.
By the end of June, the country has issued about 680 new mutual funds this year, raising more than 1.06 trillion yuan ($150 billion) in total, market data showed.
The half-year amount has already neared the record for whole-year fundraising of 1.43 trillion yuan set last year, showing the enthusiasm among Chinese investors for professionally managed products, analysts said.
New equity funds were among the most popular investments, raising more than 710 billion yuan in H1, accounting for 67 percent of the total.
The growing popularity of mutual funds comes as individual investors in China are becoming increasingly aware of the potential for higher returns on investments managed by institutions, said Hu Lifeng, an analyst with Galaxy Securities.
China has been stepping up reforms in the capital market to foster a healthier, more value-oriented investment style, with a string of measures supporting long-term investments.
As people's disposable income increases, Chinese investors will be more willing to diversify their investment portfolios, said Wang Hanfeng, an analyst with CICC.