Performance numbers are likely to slide, however, as August turns out to be a challenging month for mainland equities.
Compulsory registration and licensing will be required for fund advisory and rating providers. But a few innocent bystanders are likely to be affected.
Lipper data shows China equity funds have gained 50.67% in the first half of 2009.
Lipper analyst Xav Feng warns investors not to get carried away by recent gains.
Lipper's China and Taiwan specialist, Xav Feng, warns investors not to get carried away by China-related gains so far.
Investor sentiment continues to improve on hopes that the government's fiscal stimulus package will help turn the economy around.
Year-end figures show 2008 was a painful year for investors in mainland shares, but China equity funds are still up over a three- to five-year period.
The Hua An International Balanced Fund, the country's first QDII product, has been affected by a large amount of structured notes guaranteed by Lehman Brothers.
Equity funds in the mainland have lost nearly 50% of their value on-average in the first eight months of 2008, according to Lipper.
The performance of local equity funds in China is down 42.44% in the first seven months of 2008.
Lipper analyst Xav Feng says inflation concerns will continue to put pressure on China shares, but he urges investors to be patient because a rebound could come quickly.
Losses in the mainland’s domestic equities market are mounting and show no sign of abating, with inflation remaining a top concern.
A recent cut in stamp tax buoys the market but only temporarily as global and domestic risks and concerns continue to hound investors.
QDII funds, though also in negative territory, were able to perform better than A-share funds.
The China A-share market, reserved for domestic investors and those with QFII quotas, has suffered huge losses so far this year after outperforming the region for two years in ...
All fund categories in the mainland posted returns in February, although portfolios are still generally down over a six-month period.
More Chinese investors are turning to fund managers instead of investing directly in stocks in the mainland.