GUANGZHOU (Fund China) – Since the beginning of 2008, in the situation that many large cap stocks slumped, Golden Eagle Small/Mid Cap Fund gained a good performance. According to the statistics from Galaxy Securities Research Center, the fund’s net increase ratio in this year ranked the third among the 136 similar funds as of May 26. While the same period statistics from Chengxing showed that the fund’s net increase ratio in this year ranked the second among the actively targeted funds.

Some experts believe that there are some advantages in investing in the small/mid cap stocks in domestic markets. First, owing to the continued improvement of Domestic macroeconomic, the small/mid listed companies can have a great growth room. Second, the system changes bring about business potential and promote high-quality assets injection so that the quality of listed companies continues to improve. Third, the concentration degree of China’s industries is relatively low. The superior enterprises have the development potential to increase the degree of concentration. Fourth, small companies have greater growth potential than large companies and can have a higher price-earnings ratio level.

Copyright Fund China 2009.

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