July 21, 2010 (Chinavestor) China's 652 mutual funds experienced their third-largest quarterly loss in the second-quarter as the Shanghai Composite Index (SHA:000001) tumbled more than any other Asian bourse, according to TX Investment Consulting. The funds lost a combined 351.4 billion Yuan in the second quarter compared with a combined loss of 668.8 billion Yuan in the first quarter.
The Shanghai Composite Index (SHA:000001) tumbled 23% in the quarter as Beijing ramped up efforts to cool rising property prices and temper inflation. Europe's sovereign debt crisis has also been a significant drag on Chinese equities this year, helping the Shanghai Composite Index (SHA:000001) to a dour run that trails only Greece, Cyprus and Kazakhstan among 93 global bourses.
TX Investment said 366 funds reduced their stock positions by 8.7 percentage points from the first quarter to 73.25 percent and all of China's 60 asset management firms sold more shares than they purchased during the second quarter, according to Bloomberg News.
The top performing Chinese asset managers each lost 6.3 percent during the quarter.