China's fund assets have surpassed the 80-trillion-yuan (about 11.4 trillion U.S. dollars) mark, data from the Asset Management Association of China showed on Wednesday.
As of the end of the third quarter, the total value of China's public fund assets, private fund assets, and private asset management products of securities and futures institutions had grown by 11 percent year on year to above 80 trillion yuan, the association said.
Specifically, China's public fund assets rose by 14.6 percent year on year to 36.74 trillion yuan (about 5.22 trillion U.S. dollars), while private fund assets climbed 10.4 percent to nearly 22 trillion yuan (about 3.12 trillion U.S. dollars).
Xuan Wei, chief strategist at China Asset Management Company, attributed the vibrancy of public funds to investors' confidence in China's high-quality economic development.
He noted the industry is vigorously promoting equity public funds and index investing, saying the significant increase in the issuance of index funds and pension funds has provided investors with a wide range of low-cost, transparent, and efficient investment options.
Among public funds, equity funds saw the largest increase, growing by 39.4 percent year on year, followed by bond funds at 9.3 percent, money market funds at 12.5 percent, and hybrid funds at 15.1 percent.
Meanwhile, private securities funds outpaced other private funds with an increase of 32.3 percent year on year, while private equity and venture capital funds grew by 2.2 percent and 6.3 percent year-on-year, respectively.
Since the State Council released a guideline on strengthening regulation, forestalling risks and promoting the high-quality development of the capital market last April, the quality and investment value of listed companies have gradually increased, and their awareness of the need to reward investors has gradually grown, making equity assets more attractive to investors in a low-interest-rate environment, according to Yang Ling, vice chairwoman of StarRock Investment Management.
The rise of the fund industry will not only add dynamism to the capital market but also guide the stock market toward a future with more professional, long-term investment, Yang said.
China's fund assets top 80 trln yuan
Banks in south China's Hainan Province has launched innovative multi-functional free trade accounts to enable free and efficient transfer of funds between domestic and overseas accounts, facilitating cross-border capital flow at the Hainan Free Trade Port.
By the end of November this year, 11 banks in Hainan had launched the service, processing transactions equivalent to 295 billion yuan (42 billion U.S. dollars) with entities in 80 countries and regions.
At Hainan's Yangpu Port, one paper manufacturer demands high efficiency in cross-border settlements for its global operations.
Zhao Wenlong, the company's chief financial officer, said the newly opened multi-functional free trade account provides one-stop services for cross-border fund settlements, foreign exchange, investment, and financing. The streamlined process -- free of additional reviews and supplementary documentation -- has significantly boosted capital flow efficiency.
"Its advantages are apparent as it only requires instructions for transactions. For businesses, it's just like direct domestic transfers, eliminating the need for prior approvals and other procedures. This significantly improves the efficiency of corporate fund utilization," said Zhao.
Beyond settlement convenience, the offshore exchange rate advantage of the account has delivered tangible financial benefits to enterprises. Zhao's company saved a significant amount in financial costs on a recent 23 million U.S. dollars foreign exchange settlement transaction thanks to this feature.
"We can choose between two accounts to conduct foreign exchange purchases and settlements with the more favorable exchange rate," said Zhao. The application scenarios for functional free trade accounts are rapidly expanding from basic settlement to complex financial services, becoming a powerful support for enterprises to expand into international markets.
"Starting with the initial simple function of cross-border fund transfers, we have introduced numerous business innovations this year, such as overseas USD financing combined with onshore RMB currency swaps. With the continuous utilization of our services and the integration of our business with the FTP policies, we will roll out more innovative measures to enable enterprises to reap greater benefits," said Li Peng, deputy head of the Hainan Branch of Industrial and Commercial Bank of China.
Bank innovations facilitate cross-border capital flow at Hainan FTP
