22 September 2018

Many bond funds see unit prices slip below par value, paper says

Around 35 percent of the bond funds in China have seen their units fall below the par value of 1 yuan (US$0.16) as of Nov. 25 amid huge redemption by investors on declining yields, the Shanghai Securities News reported Wednesday, citing industry data. Twenty-three funds suffered over 10 percent loss in net value compared with the levels ix months ago, while three funds suffered more than 20 percent loss, the paper said. Falling yields have led to huge redemption by investors. Asset value of such funds was at 303.63 billion yuan in October, down 5.72 percent from September and hitting a fresh low for the year, the report said. Analysts were quoted as saying that the bond funds market is unlikely to recover in the short term as institutional investors such as banks and insurers prefer high-yield products.

– Contact HKEJ at [email protected]



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