Proving that Chinese investors continue to be overwhelmingly optimistic about their stock markets, sales of mutual funds hit a record high on Tuesday, People’s Daily reports—and for good reason. The Shanghai Composite Index, which rose 130% in 2006, is already up 27.6% this year.
And as an indication of Chinese investors’ unbridled enthusiasm, two recently launched mutual funds in China netted billions of dollars within days of their launch. China International Fund Management’s new fund took in $11.7 billion and Harvest Fund Management’s new fund reaped $5.4 billion.
Meanwhile, China’s top securities regulator is delaying approval of new funds and has asked investment firms to apprise investors of the risks of investing in the stock market. In fact, the China Securities Regulatory Commission has asked fund companies to voluntarily set up an investor education fund and use various media outlets—television, newspapers, magazines, pamphlets, the Internet and outdoor advertising—to reach consumers.