This year, 208 public offering funds have “exited”

As the end of the year approaches, the survival of the fittest in the fund industry is accelerating, and many public offering funds have announced their liquidation. According to statistics, a total of 208 public offering funds have been declared liquidated since the beginning of this year, of which 50 have been liquidated since November. In recent years, the development of my country’s public offering fund industry has been showing a polarized situation: on the one hand, the management scale of public offering funds has reached new highs, and product categories have become more diversified. On the other hand, the industry is clearly showing the survival of the fittest. Every year, a considerable number of funds face the fate of liquidation, or struggle on the “life and death line” of fund development. | Related reading (China Securities Network)

Li Zhangke

In the past 10 years, China’s public offering fund market has grown rapidly, and the products available to investors are dazzling. Up to now, the number of public offering funds has reached 10,397, and the management scale exceeds 26 trillion. In terms of new issuance, the number of new funds established each year in the past three years has exceeded 1,000, of which nearly 2,000 new funds will be issued in a single year in 2021, which is the highest in the past 10 years.

Compared with the more than 10,000 public offering funds currently surviving, the 208 liquidated and withdrawn funds this year accounted for a small proportion. Although there are abundant fund products for investors to choose from in this market, the Matthew effect is also very prominent. Especially for individual investors, they love to choose investment targets among a few leading institutions or a few star fund managers.

Although there are only about 200 funds liquidated this year, there are nearly a thousand funds that have stepped on the “red line”. The risk of liquidation of these mini-funds exists at any time. If the capital market continues to be in a downturn next year, then the number of liquidations will hit a new high.

This article is reproduced from: https://www.fortunechina.com/jingxuan/25212.htm
This site is only for collection, and the copyright belongs to the original author.