Two mutual funds that came to market on Monday raised $3.3 billion in a single day, Reuters reports. They are offerings from GF Fund Management and Fortune SGAM, a division of Societe Generale, which took in 15 billion yuan and 10 billion yuan, respectively.
Chinese regulators had unofficially capped the maximum amount a fund can raise to 10 billion yuan but recently eased the rules in the hope that institutional money will come into the marketplace and thereby stabilize it.
“Quite a lot of retail investors were dealt a heavy blow by the May 30 crash,” Shanghai Securities News reported. “This prompted some of those investors to dump stocks in favor of funds.”
The benchmark Shanghai index fell 5% in the last two days of May after the government tripled the trading tax to 30 basis points.
Two other funds will also be launching this month, one from Invesco Great Wall Fund Management this week and another from Yimin Asset Management next week. The four funds are expected to raise a total of $5.9 billion.