SHANGHAI (Reuters) - A Chinese fund attracted about 120 billion yuan ($17.14 billion) of subscriptions on its first day, on Tuesday, 20 times the sales target, a source said, underscoring investor enthusiasm despite the coronavirus.
The mutual fund, which can invest up to 95% of assets in stocks, aimed to raise 6 billion yuan, but the marketing campaign was cut short by the outpouring of interest.
The sales put management under lot of pressure, said a senior executive at Foresight Fund Management Co, which launched the fund.
China’s stock market has rebounded over the past two weeks, recouping losses in early February triggered by the rapid spread of the coronavirus.
The boom in trading contrasts with bleakness in many parts of the economy. Factories remain closed and shops are deserted amid an epidemic that has killed over 1,800 and sickened more than 72,000 in China.
Investors are encouraged by the measures Beijing has taken to aid the virus-hit economy. It is stepping up infrastructure investment, pumping liquidity into the banking system, and easing financing rules for listed companies.
Foresight Management was founded in 2018 by fund manager Chen Guangming. The new fund, which has a three-year lock-up period, is a balanced fund that invests 60% to 95% of its assets in stocks, the rest in bonds.
Reporting by Samuel Shen and Brenda Goh, editing by Larry Kiing
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