China’s $1 Trillion Stock Rout Pinned on Panicky Fund Investors
- State media urge new investors to be rational amid plunge
- Mutual funds drew record cash after outperforming benchmarks
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As China’s stock market stabilizes after a $1.3 trillion rout, it’s becoming clear that the mutual fund industry is being put at the center of the turbulence.
State media singled out the sector on Thursday, with the Securities Times calling in a front-page commentary for new investors to stay rational and fund managers to better balance growth in assets with long-term performance. Major insurers, on the other hand, didn’t make large-scale redemptions during the selloff, according to another report.