(Reuters) - Chinese money is pouring into Japan-focused stock funds as the Nikkei hits 33-year highs, triggering repeated warnings from fund managers about market risks.
ded funds (ETFs) that track the Nikkei 225 Index have drawn such feverish interest, that their prices far exceed their net asset value.
The ETFs' managers, E Fund Management Co and China Asset Management Co (ChinaAMC), flagged risks to investors for the third session in a row on Tuesday.
"We caution investors to pay attention to price premium risks in the secondary market," the mutual fund companies said in separate statements.
"If investors invest blindly, they may incur huge losses."
The Nikkei has gained 19% this year, with foreign investors in particular attracted by strong corporate earnings and signs of economic recovery.
Chinese investors have been ploughing money into a handful of ETFs that invest in Japanese stocks under QDII, the outbound investment scheme.
No comments:
Post a Comment