Hong Kong funds continue to see outflows
The assets of most Hong Kong-based funds have fallen over the past year, according to the latest quarterly report from the Securities and Futures Commission (SFC).
The net asset value (NAV) of funds domiciled in the city was $169.67 billion at the end of June, marking a reduction of 15.3% year-on-year, or 5% quarter-on-quarter. ‘other.
All major asset classes have posted losses over the past year, according to data from the SFC.
Bond funds suffered the most, with net asset value plunging 33.3% year-over-year to $27.07 billion in June, from $40.61 billion at the end of June 2021.
As a result of these changes, mixed funds have become the third largest asset class among all Hong Kong-domiciled funds.
Despite a 15.6% decline in net asset value year over year, mixed funds had a total net asset value of $30.04 billion at the end of June 2022.
Equity funds, meanwhile, the second largest asset class among Hong Kong-domiciled funds, have also had a tough year over the past 12 months.
The asset class recorded a 25.3% decline in net asset value over the period to $50.38 billion, from $67.45 billion at the end of June 2021.
The only two asset classes to see asset gains were money market funds and index funds, including ETFs, leveraged and inverse products.
Index funds remain the largest asset class by net asset value, with a total value of $52.30 billion at the end of June, up 9.3% from $47.86 billion a year earlier.
Money market funds, on the other hand, saw a 12% year-over-year increase in net asset value to $9.83 billion, but growth slowed to 2.9% from net asset value for the first quarter of this year.
Overall, Hong Kong-domiciled funds saw aggregate net inflows of $0.5 billion in the latest quarter.
Between April and June this year, the regulator licensed 35 mutual funds and mutual funds, including 17 Hong Kong-domiciled funds.
Since the launch of Stock Connect on July 4, the watchdog has also approved four ETFs for trading: CSOP Hang Seng TECH Index ETF; iShares Hang Seng TECH ETF; Hang Seng China Enterprises Index ETF; and Tracker Fund of Hong Kong.