Posted September. 13, 2008 08:57,
China funds in July began suffering net outflow after seeing net inflow in the first half of the year, the Asset Management Association of Korea said yesterday.
China funds suffered net outflow of 93.9 billion won in July and 236.8 billion won last month. The weakening Chinese stock market led to a drop in fund inflow from May and caused net outflow for two consecutive months.
The last net outflow of China funds had come in August last year.
Daeshin Securities said 12 trillion won flowed into Chinese funds from June to November last year, more than half of 21 trillion won established for the funds.
Chinese funds saw net inflow of 7.64 trillion won in October last year alone.
Despite the U.S. subprime mortgage and consequent plunges in global stock markets, the Chinese stock market rallied. That accelerated a rush for China funds, said Daeshin analyst Oh Seung-hun.
Net inflow of China funds peaked in October last year but began declining due to the lackluster Chinese stock market. The amount dwindled to 6.6 billion won in January, but briefly shot up to 496.1 billion won in April in anticipation of a turnaround.