Profits of Chinese funds soar 391% in 1H

Operation income of all 323 funds managed by 56 fund management companies (FMC) in China totaled up to RMB 490.9 billion, a 391% increase from last year's RMB 99.95 billion, China Securities Times reported.

According to their interim results of this year, the total realized net profits of the 56 FMCs amounted to RMB 363.96 billion, 74.14% of the total revenue, and floating profits is RMB 126.9 billion.

The rate of return (ROR) for close-ended funds dropped from 34.95% to 17.47% compared with the same period last year. Profits from open-ended funds related to stocks rapidly accounted for 82.53% of the total earnings. Since the growth rate of the average ROR of open-ended funds is similar to that of close-ended funds, the weighted proportion of return for open-ended fund mainly resulted from new funds issuing and subscription for news funds. 96% of the total profits comes from stock trading , compared with 80.86% in last year.

Among the fund management companies, revenues of E Fund Management Co. Ltd., China Southern Fund Management Co. Ltd., China Asset Management Co. Ltd., and Harvest Fund Management Co. Ltd. exceeded RMB 30 billion respectively. E Fund gains slightly more than others due to the heavier weighting in stock-related funds.

Income from fund management fees increased slower than the operation income. 56 FMCs reported an total income of RMB 8.53 billion from management fees for the first six month, up 300% over the same period last year. The management income of Harvest Fund is RMB 630 million, which ranked first among all the FMCs.

Six FMCs have gained incomes of management fees above RMB 300 million. Ten FMCs' incomes are between RMB 200 million to 300 million, and 12 FMCs earn between RMB 100 million and 2 million.

According to the information of funds holders, more individuals subscribe the open-ended stock-related funds. During the first half of this year, the weight of individual investments rose 14.97% to 91.27% in the total investments of open-ended preference-stock funds, and it also increased 10.44% to 92.44% in mixed asset funds. The institution investments only occupied less than 10% of the both funds respectively.