Fund sector suffers losses in first half of year

SHANGHAI: China's mutual fund industry posted a huge loss equal to 1.08 trillion yuan in the first half of the year, in which equities-oriented funds generated 1.05 trillion loss amid the tumble of the stock market, statistics show.

The figures, issued by TX Investment Consulting Co, a securities statistics provider, are based on the first-half reports of 59 fund firms, which are running a total of 364 funds. Boshi Fund Management Co reported a loss of 70.7 billion yuan, taking the lead of all 59 firms.

Zhao Xinge, professor with China Europe International Business School (CEIBS), said what took the gloss of the funds that had made huge profits last year was the stock market calamity, in which the Shanghai Composite Index nosedived from last year's record high 6,124 to below 1,900 on September 18.