MMF sales hit record high
16/1/2004 16:49
Boosted by investor's purchasing zest for the new cash fund product,
the average sale of China's first three money market funds has hit a record high
for the country's mutual funds of 5 billion yuan (US$610 million), today's
Securities Times reported.
The volume far outvalues the average
1.7-billion-yuan sale of last year's open-ended funds.
Boshi Cash Income
Fund, which concluded subscription on Wednesday, reported a top sale volume
among the three of 6.28 billion yuan, while Hua'an Cash Fuli Fund and Merchants
Cash Growth Fund followed with 4.3 billion yuan and 4.6 billion yuan
respectively.
Market analysts attribute the low risk and high liquidity of
MMFs to the outstanding sales, referring to their strategy of investing in the
asset classes of treasury bills, certificates of deposit and commercial
papers.
The zero subscription charges and record low commission fees are also
attractive, particularly to individual investors, they say, noting that 93
percent of Hua'an fund's buyers are individuals.
Overseas corporate investors
also show interest in the funds, as all the three funds' managers have claimed
that Qualified Foreign Intuitional Investors have bought their funds, though
declining to disclose more details.
Hua'an Fund Management Co Ltd, Boshi Fund
Management Co Ltd and China Merchants Fund Management Co Ltd kicked off the MMF
sale mid last month, shortly after obtaining approval on December 10 from the
securities market watchdog.
Jane Chen/ Shanghai Daily news
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