China's plan to spread tech wealth fizzles with delay of CDR

China's plan to spread tech wealth fizzles with delay of CDR

People walk along an elevated walkway as an electronic ticker displays the figures of the Shanghai Composite Index, top, and the SZSE Composite Index in Pudong's Lujiazui Financial District in Shanghai, China, on Saturday, June 2, 2018. China's banks, scrambling to adjust to the government's deleveraging campaign, are likely to add to pressures on the corporate bond market as they shed more of their massive note holdings and de-risk their balance sheets. Photographer: Qilai Shen/Bloomberg

China’s ambition to have its citizens profit from the nation’s publicly traded high-tech stars has been dealt another blow.

The six three-year mutual funds set up to invest in the China depositary receipts of such companies have shifted focus to low-yielding bonds instead, generating returns of as little as 0.3 percent since their inception, data compiled by Bloomberg show. That’s a double disappointment after the funds, established in early July and sold to institutional and retail investors, only raised about one third of their upper 300 billion yuan ($44 billion) limit.

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