China launched 90 funds, raised 390 billion yuan (US$50.44 billion) and
registered 7.78 million new accounts in 2006, according to the latest statistics
released on Saturday.
Since 1992, China has launched more than 300
funds. These funds are valued at over 1 trillion yuan, accounting for 19 percent
of present stock market, data from the Second Annual Conference of the Chinese
Security Investment Fund Industry showed.
The country experienced a fund
frenzy last year as retail investors shifted low-interest bank deposits into the
bourses, which surged 130 percent last year after a four-year slump.
Thanks to the booming stock market, equity funds continue to lead the
increase and took up nearly 50 percent of the market share in 2006. The number
of fund-buyers reached 14.27 million by the end of last year.
"The
growth rate of fund capital reached 82.6 percent," said Du Shuming, research
chief of Galaxies Securities, adding the fund-buying frenzy will last for "a
long period".
However, average annual yields of equity funds have
undergone huge fluctuations since 2002 and even lost 11.9 percent in 2004,
according to figures released earlier by the Galaxies
Securities.
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