Chinese Funds Post Huge Losses in H1

China-based funds lost a total of 439.7 billion yuan in the first half of this year but they collected more in management fees, according to statements released by 60 fund management firms.

It was the second largest semi-annual loss for China's fund industry, only after the first half of 2008.

Among the 665 funds managed by the 60 firms, 294 stock-related funds lost 316 billion yuan, accounting for 71.4 percent of total losses by funds. Posting profits for the first half were 64 bond-related funds, 43 currency-linked funds and one hybrid fund.

Despite the loss, fund companies collected 14.9 billion yuan in management fees, a 19 percent rise from a year earlier. An analyst said that management fees were based merely on the size of funds under management, rather than the performance of funds.