Two China equity funds raised $2.33 billion on Monday alone, as China’s market continues to soar and the frenzy to invest reached such a furor that the phone systems at a number of banks crashed, Reuters reports. Since the beginning of the year, the benchmark Shanghai index is up three-fold.
Hua An Fund Management raised $1.3 billion for a small-cap fund that it converted from a closed-end fund, while Lord Abbett China Asset Management raised $1.03 billion for an equity fund.
The amounts raised are significant, since China’s mutual fund industry has a total of $129 billion of assets, and the money that the two funds raised in a single day represents nearly 2% of that total.
