Chinese investors flee into money market funds from stocks

The US$941bil China Investment Corp (CIC) wants permission to invest in local shares and bonds, and has laid the groundwork for an application to the central government, sources said.

SHANGHAI: Chinese investors flocked into money-market products at a rate outpacing equities and bonds last quarter, adding to what is already the biggest segment of the nation’s mutual fund industry.

Mutual funds investing in low-risk, short-term debt instruments grew 5.4% last quarter to 7.7 trillion yuan (US$1.1 trillion), compared with the 3.7% increase in bond funds and a drop of 1.3% in equity funds, data compiled by the Asset Management Association of China show.