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

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". He's also stopped publishing fund performances