Only China funds post yield amid global fall

Only China funds are posting ‘yields’ as only the Chinese stock market remains bullish despite global stock markets plummeting in tandem.

According to the financial information company FnGuide on Sunday, China (mainland) funds posted 1.03 percent of monthly yield as of Thursday, to become the only fund among the more than 20 funds for regional economies. China funds also posted a three-month yield of 12.8 percent, which was the highest. The monthly yield of China funds was about 11 percentage points higher than that of Russia funds (-10.19), which are performing the worst. China funds also displayed superior performance when compared with those for other regions including Japan (-5.64 percent), India (-2.19 percent), North America (-5.78 percent), and Europe (-7.07 percent).

China funds have avoided posting losses because the Chinese stock market has not declined despite concern over a global economic slump. Morgan Stanley Capital International’s regional indexes suggest that advanced countries and emerging economies recently saw their stock decline 8.1 percent and 9.9 percent, respectively, from their highs in September, but the Shanghai Composite Index edged up 0.4 percent. Notably, the index gained as much as 15.9 percent in the second half.

Experts say that funds that were divested from emerging Asian economies including Korea since mid-September heavily moved to China. Notably, analysts say that expectations for Shanghai-Hong Kong Stock Connect, which allows swap trade of Shanghai and Hong Kong shares, has sparked a ‘Buy China’ binge.