GUANGZHOU (Fund China) – Yesterday, the shanghai Shenzhen fund index opened high but tumbled along with the stock market’s sharp drop. SSE fund index plunged 172.68 or 3.31% to 5044.09 and SZSE fund index slumped 200.68 or 3.89% to close at 4964.21 points. These two bourses’ whole day trading amount is 3.756 billion yuan with a 15.181 billion volume. The trading volume is extended by 37%.

The funds across board all plummeted sharply. 31 funds dropped more than 2% among the 34 funds opened for trading. Jinghong Fund shed 5.23%, the worst one. ETF funds all dropped more than 3%. China AMC Shanghai 50 ETF, the worst lost fund, sagged 4.71% to 3.969 yuan. And in the LOF funds, the 26 funds opened for trading also all fell more than 2%. China Nature Core Growth Fund shed 5.79%, ranking NO.1, the worst lost.

Recently, facing with such a continuous sell-off, SuKeyan, the investment consultant in sale department of Century securities Co. suggested that investors should remain their holdings and wait for index fund’s recovery . And for investors holding closed-end funds, he suggested that a redemption for those closed-end funds that have gained a yield as these funds rose largely in the early time and are likely to drop sharply even worse than the index fund and open-end fund’s drop in this adjustment.,

However, another sounds from FuQiang, investment consultant in Kunming sales apartment of China Merchants Securities said that it is no good to pump all the holdings, as the index fund is at its relative low point and maybe this is the last drop. The index fund may properly take a new high after the Chinese Spring Festival.

Copyright Fund China 2009.

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