J.P. Morgan gets 90 bn Rmb offered for new fund in one day

A new mutual fund by J.P. Morgan Flemming received in one day time 90 bn Renminbi (US$ 11.6 bn) of subscriptions, Reuters reports, more than ten times its own estimation.

The oversubscription ratio is one of the highest seen at any fund since China's stock market bull run began a year ago, and suggests new Chinese investors are continuing to enter the market, fund managers said.

Originally the fund wanted to raise eight billion Rmb in the market, but has decided to increase the figure to 10 billion Renminbi. The rest of the money will be returned. Dealing with a larger amount of capital would be rather difficult to deal with in the current market situation. Also regulators have installed a cap of 10 billion Rmb.
The success shows not only that there is enough money still available in the market. The reputation of J.P Morgan's China International Fund Management Co. has been very successful with their mutual funds in the past, another reason for its current success.