Overall mutual fund assets also reached a record high after a gradual recovery from a net outflow in the first half of 2016.
There was a conspicuous trend of inflows into bond funds in China, which lasted throughout the year. Assets roughly doubled compared to 2015. Hong Kong also observed a similar shift.
Asset breakdown of open-ended funds
| Fund type | Assets as of (RMB bn) | ||
| Dec 2016 | Jun 2016 | Dec 2015 | |
| Equity | 706 | 665 | 766 |
| Mixed | 2,009 | 1,904 | 2,229 |
| Money market | 4,284 | 4,201 | 4,444 |
| Bond | 1,423 | 814 | 697 |
| QDII | 102 | 90.2 | 66.3 |
| Total | 8,525 | 7,674 | 8,202 |
Source: AMAC
Rachel Wang, Morningstar China’s director of manager research, earlier attributed the appeal of bond funds to the comparatively low yields investors would get from money market funds as well as institutional demand for safe assets.
The other fund type with net inflows in 2016 was the QDII fund, or qualified domestic institutional investor fund, one of the few channels for onshore investors to buy offshore assets.
After the RMB fell 4.2% in 2015 and 7.2% in 2016 against the US dollar, many mainland investors sought diversification away from yuan holdings. Some fund managers also see the weakening currency continue to pose risks for the China equity and bond markets.
On the other hands, equity funds, mixed asset funds and money market funds all saw their assets shrink during 2016.
Also in 2016, the number of open-ended funds grew by 1,006 or nearly 40% year-on-year to 3,564, according to AMAC data.
