Apr. 21, 2008 (China Knowledge) - Chinese 58 fund management companies, which manage 363 mutual funds in the country as of the end of 2007, saw robust growth last year. According to the new accounting standards, revenue of the mutual funds rose more than 300% than that of 2006.

However, stock turnover of the open-end fund fell by over 50% amid the bullish stock market, which is the first time in three years, with turnover rate of closed-end funds also decreasing to 217.43%. A total of seven funds posted more-than-1000% turnover rate within the year.

Find out the detailed analysis on the latest data on China's fund management companies' revenue as well as how the figures were affected by the bullish stock market in 2007 in CKF's Fund Management Weekly.

Highlights of the report:

- In 2007, 342 mutual funds (excluding four QDII funds) have reported total revenue of RMB 1.17 trillion, which almost equals to the total amount of the past seven years, (of which) 70.9% of the 2007 revenue was from investment return, which amounted to RMB 830.38 billion. Besides, gain from fair value change was RMB 327 billion, and interest income reached RMB 10.84 billion.

- Among all financial institutions, fund management houses were the largest winner during the bullish run of 2007. Last year, total management fee revenue of 58 fund management companies reached RMB 28.1 billion, more than four times that of 2006.

- After huge fluctuations in late Feb and May 2007, more investors prefer to invest in fund in stead of stocks. They viewed mutual funds as low-risk and high-return products. Consequently, the percentage of retails investors reached a new high in 2007. By the end of 2007, retail investors held 1.84 trillion units of open-end funds, accounting for 90.05% of the total, which is also 1.55 percentage points higher than that of the end of June 2007.