The assets of China's booming mutual fund market surged to a record high in 2006, said an industry report.

 

Several types of mixed fund -- an investment fund including both equities and bonds -- jumped between 95.15 to 124.74 percent in 2006, said Lipper, a fund rating agency in its latest analytical report.

 

The whopping growth rate -- well above the global average -- was fueled by the bullish stock market which broke out of its four-year slump last year, the report said. The Shanghai Composite Index registered a 130.43 percent rise last year and the Hushen 300 Index was up 120.02 percent.

 

The total market value of mutual funds rose 83 percent from US$60 billion at the beginning of 2006 to more than US$110 billion by year end, according to figures released by Z-Ben Advisors, a research institute.

 

But Zhou Liang, a senior Lipper research analyst, warned fund investors to beware of the risks involved as huge amounts of capital flood the market.

 

(Xinhua News Agency January 13, 2007)