The net value of investment funds grew by leaps and bounds in China reaching
a record 850 billion yuan (US$109 billion) by the end of 2006, according to a
leading provider of Chinese financial data known as WIND.
WIND says
investment funds grew by 82.26 percent over the previous year. By the end of
2006, China's securities investment funds had issued 620.8 billion units, up
31.68 percent year on year.
Open-ended funds investing mainly in
stocks led the growth in 2006 with a year on year rise of 93.39 percent to 218 billion units.
Straight bond-type funds also grew by 196 percent to 9.97 billion units.
According to WIND, the redemption ratio of short-term bond funds and
money market funds reached 66 percent and 56 percent respectively, indicating
that capital flew in large quantities from the bond and money markets to the
stock market.
Strong performance on the Chinese stock market has drawn
in more investment and the market value reached more than 8.8 trillion yuan
(about US$1.14 trillion) till Friday.
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