Investors drawn to stock funds

Equity funds are growing in popularity. Figures show that in the third quarter this year, the net earnings of China's equity fund products was up 22 percent year on year. But earnings for the country's 47 bond funds are down. Fund managers at the fifth Beijing International Finance Expo say Chinese investors are taking more risks.

Many assets management firms at the expo are holding training sessions, and offering investment tips to attract the attention of consumers. They are also seeing a increasing number of visitors requiring investment consulting services. And most of these people have already invested in mutual funds or other collective investment schemes.

A fund investor said, "I just want to know the trend in the market, or any new developments in the sector."

A fund investor said, "I invested in funds. I am confident about the future of the country. It's much better than just put the money in the bank. "

Banks attending the expo say most of the fund investment products they sell now have a stable source of clients. And other types of funds, like stock funds and bond funds, have also attracted different groups of investors.

A bank employee said, "Most of out clients prefer bond or currency funds."

Zhao Xinyu, GM of Retail & DM Dept, CHINA AMC, said, "Equity funds are most popular this year. Base on our account analysis, more and more of our clients are long-term fund holders. They have also become more matured. So the fund sales and redemption this year should be quite stable. "

Some fund managers say the popularity of bond funds suggest a rise in risk aversion. But many people are aware of the low-returns of such investment vehicles. That's why the number of long-term investors putting money into stock funds has increased this year.