Concerns over structured funds amid A-share swings
China’s structured funds have been suffering from significant losses due to their leverage and volatile A-share prices. Market observers say tighter listing rules and more investor education is urgently needed.
Concerns have been raised about investor education and product innovation in China’s structured funds market following wild swings in A-share prices over the past month.
The leveraged nature of the popular funds has meant that while investors enjoy big profits when shares rise, a bearish market can mean they suffer huge losses.
It comes after the Shenzhen Stock Exchange warned about the risks of nine funds on Tuesday, after China A shares posted their biggest single-day loss the…
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