SHANGHAI (Reuters) - A Chinese mutual fund attracted a record $37 billion worth of investor subscriptions on the first day of sales, state media reported, reflecting Chinese retail fever toward stocks.
E Fund Management Co launched the fund on Monday and raised 237 billion yuan ($36.6 billion) in subscription money, nearly 16 times its fundraising cap of 15 billion yuan, official Securities Times reported on Tuesday, citing sales channels. E Fund said official data will be released soon, without giving figures.
The demand reflects Beijing's success in boosting investor confidence in capital markets following a series of reforms, and points to more momentum in China's bull run that saw the bluechip CSI300 index jump 27% in 2020.
It also highlights growth potential for China's roughly $3 trillion mutual fund industry, which was fully open to foreign investors last year.
"Global fund managers need to know just how significant the opportunity is. This is the perfect demonstration," said Peter Alexander, managing director of fund consultancy Z-Ben Advisors, which forecasts China's mutual fund market will triple in a decade.
E Fund's new product will put 60%-95% of assets in stocks. The fund can also invest up to half of its equity portfolio in Hong Kong shares.
Chinese investors are pouring money into stocks through funds as the benchmark CSI300 flirts with record highs amid signs of a strong economic recovery.
China's economic growth accelerated to 6.5% in the fourth quarter, and is poised to expand further this year even as the global pandemic rages.
The fund industry is also benefiting from China's capital market reforms as Beijing seeks to channel household savings into stocks to fund innovation and a "tech war" with the United States.
E Fund Management's new fund, to be managed by Feng Bo, will invest in companies seen as having a competitive advantage in products, technology and market share.
($1 = 6.4843 Chinese yuan renminbi)
(Reporting by Samuel Shen and Andrew Galbraith; Editing by Stephen Coates)