Risks and concerns hinder China funds *[News]
Qualified domestic institutional investor (QDII) funds, posted an
average return of 5.67% last month, reversing their 9.58% average loss
in March. The funds are down 12% year-to-date.
Qualified foreign institutional investors (QFII) posted an average
return 3.00%, after declining 16.39% in March. The funds are down
21.89% year-to-date. The QFII funds with the highest amount of net
sales in April were iShares FTSE/Xinhua A50 China Tracker and W.I.S.E.-
CSI 300 China Tracker. The former's AUM increased 265% and the
latter=92s gained 229%. The AUM of the 19 QFII funds tracked by Lipper
last month rose to $8.39 billion.
China launched the QFII programme in mid-2003 to allow approved
foreign institutions to trade A-shares and bonds on the Shanghai and
Shenzhen exchanges. The programme was part of the government=92s efforts
to open China=92s capital market and ease controls on the capital
account, under which the yuan isn=92t fully convertible.
=93Global markets still face challenging issues in the future,=94 says Xav
Feng, head of research for Taiwan and China at Lipper. =93Investors also
need to re-evaluate investment values after the recent euphoria.=94
-Asianinvestor Magazine-
