Chinese Investors Go For Energy Mutual Funds
Chinese mutual fund investors are choosing to put their
money into energy, petrochemicals, steel and coal companies
listed on the Shanghai and Shenzhen exchanges. These industries
are seen as being in the best position to take advantage
of China's rapid urban growth.
Playing the stock market is particularly popular with
investors in Shanghai, followed by Shenzhen, then Beijing.
Since many investors lost their savings in the early 90s,
Chinese mutual funds have been very popular with investors.
In the period from June 2002 to March 2004, the best
performing stocks have been Chinese blue chips concentrated
in automobile, steel and petrochemicals.
The best performing sector has been the steel industry,
and demand for steel has been so strong that South
Korea and Taiwan and world steel prices have been
affected. Following have been petrochemicals, electricity
generation and coal. Prices for all these commodities
have gone up dramatically, and in the short term, their
prices will not come down, especially as summer approaches.
The electricity shortage has been so severe that some
factories have installed their own electrical generation
equipment, and the shortage is expected to continue for
another two years before new plants come online.
Technology listings in Shanghai and Shenzhen have shown
early signs of recovery, and Chinese investors and fund
managers are on the lookout for new performers in the
field.
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