Chinese investment funds posted a record-breaking performance in 2020 despite the adverse impacts of the COVID-19 pandemic on the global economy.
In 2020 Chinese publicly offered funds saw total profits rise by 68.38% YoY to hit 1.977 trillion yuan, according to data from TX Investment Consulting.
This amount is well above the previous records set in 2019 and 2007, when the profits of Chinese publicly offered funds were 1.18 trillion yuan and 1.1 trillion yuan respectively.
The actual profit amount is expected to be above the 2 trillion yuan threshold when the profits of new funds that have yet to publicly release their annual reports are included.
Domestic analysts say that retail investors turned to publicly offered funds in droves in 2020 instead of speculating on the market themselves, with strong market fundamentals serving to boost their overall performance despite a very poor start to the year during the outset of the COVID-19 pandemic.
In the first quarter publicly offered funds posted losses of 28.875 billion yuan, amidst extensive lockdowns around China to contain the spread of the Novel Coronavirus.
By the second quarter profits hit 755.727 billion yuan, while in the third and fourth quarters they rose to 436.177 billion yuan and 823.325 billion yuan respectively, for full year profits of 1.977 trillion yuan.