A darkening of the economic and geopolitical clouds has prompted investors in bonds, stocks and other asset classes to cut their inflows, figures from the Chinese investment sector show.

Money raised by newly-launched private funds in China sank by 44 per cent in January from a month earlier, latest official data showed, suggesting that rising geopolitical tensions and a slowing economy are cutting risk appetites, a report said.

Reuters (23 February) quoted data from the Asset Management Association of China (AMAC).

Newly-registered private funds totalled RMB95.9 billion ($15.16 billion) in January, AMAC was quoted as saying. (WealthBriefingAsia was unable to locate the data on the organisation’s website. It may update in due course.)

Of the total, fundraising by products that invest in stocks and bonds dropped 49 per cent, while private equity and venture capital fundraising fell by 25 per cent and 17 per cent respectively, the report said.

China’s regulatory crackdown on sectors such as technology and education in 2021, coupled with the prospect of higher US interest rates, and geopolitical worries linked to Russia and Ukraine, have spooked investors.