China's bond fund market is expected to maintain the good performance, and the scale of the bond funds may continue to increase, given the historical experience and macro environment of bond market, according to industry insiders.
The scale of China's bond fund market has increased significantly in 2018, from 1.49 trillion yuan in January to 1.98 trillion yuan in October, an increase of 32.9 percent, according to statistics of the Asset Management Association of China.
The popularity of bond funds, to some extent, shows the sluggish performance of the monetary funds. Under new liquidity regulations, the development of the monetary fund has been capped with its yield falling.
Statistics show that by December 10, average 7-day annualized yield of admissible 657 monetary funds stood at 2.76 percent. The monetary fund has no longer been a product that enjoys a high yield and the high liquidity. Under this background, short- and medium-term bond funds have gained market favor this year with outstanding yield performance.
Choice statistics show that by December 11, the number of short- and medium-term bond funds right in the issuance period had reached 29, which became the focus of the fund companies.
Short- and medium-term debt funds with their yields ranging between monetary funds and ordinary bond funds have successfully attracted more investors as a result of strict supervision this year. In the context of current volatile stock market, bond funds are expected to be a good option for the investors, said expert.
Latest comments