China's Mutual Funds Implode at Fastest Pace in Five Years as Stocks Sink
- Fund closures quicken as assets shrink, redemptions rise
- Once popular ETFs also face oversupply, cooling demand
A meltdown in Chinese shares is wreaking havoc on the country’s asset management sector, pushing mutual fund closures to a five-year high in another sign of waning investor confidence.
About 240 local mutual funds were liquidated last year, according to Bloomberg-compiled data dating back to 2014. That’s the most since 2018, when stricter asset management rules triggered a major industry shakeup. Among the closed funds, four out of five had a stock-focused mandate, which was a record.