Fact: China funds on Nordnet’s platform that have lost the most number of owners in percentage since January 1, 2022
JPM China: –20 percent
JPM Greater China: -21 percent
Fidelity Funds Greater China: -30 percent
UBS Greater China: -21 percent
BNP Paribas China: -22 percent
Source: Nordnet.
The interest of Swedish savers in pure China funds has decreased steadily in recent years, according to statistics from Nordnet.
The number of savers on the online bank’s platform has decreased by around a fifth since the beginning of 2022.
That the political risk in China has increased is described as an explanation.
“The regime has clearly announced that it wants to increase control over private companies, and that causes investors to turn a blind eye,” writes Nordnet savings economist Frida Bratt in a comment.
Concerns about a possible Chinese invasion of Taiwan also weigh in.
Another worrying factor in the eyes of investors is the deeply indebted Chinese real estate market. There, it is above all two property companies that are in focus.
Partly Evergrande, which has been in crisis since autumn 2021, and which has now applied for bankruptcy protection in the USA. Partly Country Garden, whose profit recently warned of a loss of billions in the first half of 2023.
“The real estate sector was for a long time an engine of growth – whole cities were built with houses where nobody moved in, in places where nobody wanted to live. But the fun ended, the financial risks were exposed and the result is a highly indebted sector in one of the most important growth engines of the world economy “, writes Frida Bratt.