Chinese mutual fund industry grew by 5.2% in the first quarter of 2018, to reach RMB 12.3trn ($1.95trn) on 31 March, according to FSA‘s estimates based on data from Morningstar and earlier reports from the Asset Management Association of China.
Although much of that growth is thanks to the net inflows of new assets, most of them went into money market and short-term bond funds, while managers of equity, broader fixed income and mixed-asset funds saw net outflows.
The mutual fund industry in China continues to be dominated by money market funds, which account for around 65% of assets under management in open-ended mutual funds. Fixed income funds constitute 14%, and mixed-asset funds another 14%. Equity funds account only for around 6.5% of the assets.
Q1 2018 net flows in Chinese mutual funds
| Category | AUM | Q1 net flows |
| Money Market | 7.53trn | 421.9bn |
| Fixed Income | 1.63trn | 168.7bn |
| — Short-term bonds | 602bn | 209.7bn |
| Mixed Assets | 1.64trn | −239.1bn |
| Equity | 762bn | 14.2bn |
Data: Morningstar, in renminbi, as of 31 March 2018
Due to opaque fund reporting patterns in China, data for the first quarter of 2018 is available only for around 80% of funds at this time. FSA used earlier data to estimate the current AUM.
The largest asset management firms in China, by AUM in non-money market funds, have all seen net outflows in the first quarter.
Q1 net flows in top 10 Chinese asset management firms
| Firm | AUM on 31 March 2018 | Q1’18 Net Flows |
| E Fund Management | 188.9bn | −32.4bn |
| Bosera AM | 173.5bn | −3.5bn |
| Harvest Fund Management | 157.2bn | −30.8bn |
| China Southern Fund Management | 137.1bn | −32.1bn |
| China AM | 126.0bn | −36.5bn |
| GF Fund Management | 107.3bn | −1.9bn |
| China Universal AM | 104.7bn | −489m |
| China Merchants Fund Management | 99.1bn | −42.3bn |
| ICBC Credit Suisse AM | 75.9bn | −8.3bn |
| Fullgoal Fund Management | 73.3bn | 3.2bn |
Data: Morningstar, in renminbi, as of 31 March 2018, excluding money market funds and short-term bond funds.
Invesco Great Wall, one of the top ten asset management joint ventures by AUM, was the most successful asset gatherer in the first quarter, with RMB 6.6bn of net inflows into its mutual funds, excluding money market and short-term bond funds.
The IGW CSI 300 Enhance Index Fund was the firm’s top-seller in the first quarter, attracting RMB 2.05bn in net new flows, while the firm’s Emerging Growth Fund and the Quantity Select Equity Fund saw RMB 1.37bn and RMB 1.16bn in inflows, respectively.
The firm’s AUM at the end of March was RMB 56.3bn, up from RMB 51.1bn at the end of 2017.
Orient Securities (China) and Fullgoal Fund Management were the most successful asset gatherers among domestic Chinese asset managers, with RMB 4.46bn and RMB 3.23bn in net new assets in non-money market funds.
Bank of Communications Schroders, was the second joint venture in the top five asset gatherers, with RMB 2.03bn of new assets.
