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New rules, trade war push some China funds to struggle for survival

Fundraising by private funds has been on a steady decline, dwindling to 2.39 bn yuan in May, compared to 57 bn yuan a year ago, according to data from Shenzhen Qianhai Simuwang Fund Distribution Co

Reuters  |  Shanghai 

It's already been a harsh year for Chinese funds, hit by new rules aimed at reining in debt in the country's financial system. Now, the sell-off in China stocks induced by trade war anxiety further threatens their health and for some, their survival. Case in point: private fund house Nanjing Hu Yang Investment Co has seen its assets under management halve to 50 million yuan ($7.5 million) over the past year on redemptions and investment losses. Its chairman, Zhang Kaihua, said he is putting his funds, which bet on consumer stocks, into "a state of dormancy". ...

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First Published: Mon, July 09 2018. 07:35 IST