It’s pretty safe to say that the past few months have not been kind to the U.S. asset management industry. Here’s a story on Carlyle shutting down some of its funds, and here’s another one on hedge funds getting burned on Black Monday. Well, things aren’t so different over in mainland China:
“ChangSheng Fund Management has asked its unitholders for approval to shut down its Shanghai-listed SSE Market Value Top 100 Index ETF. The Beijing-based manager has invited unitholders to attend a meeting in October for them to vote on the ETF liquidation proposal, according to a statement from the manager.”
Apparently, this will be the first ever ETF liquidation in China according to Asia Asset, and it may be the harbinger of more closures to come as several mutual funds – including a QDII status fund – race to close up shop.
ChangSheng has yet to receive approval though, and would need at least two-thirds of the fund’s holders to vote in favor of liquidation in order to proceed, but given it’s 25% decline in July alone, chances are high that the DBS-backed firm will receive enough votes for it to push through.
The fund, which was launched just two years ago, had just $3.2 million in NAV as of the end of June.
Photo: Robert Daly