History of China's Private Funds-Twenty Years in Retrospect(Year 2007)

Runaway Bull

The year 2007 was a time of explosive growth in China's capital markets. The Shanghai Composite Index, which opened the year at 2,728.19 points, soared to a staggering 5,261.56 points by year's end, a 96.66% increase. This bull market, though punctuated by two significant corrections in February and May, was fueled by a wave of optimism and fueled a phenomenon known as "from public to private" - the exodus of star fund managers from mutual funds to hedge funds.

The allure of hedge funds was undeniable. The market was booming, and the potential for outsized returns was tantalizing. Top performing mutual funds managers ike Xiao Hua of Bosera Asset Management Co. , Zhao Jun of 嘉实基金管理有限公司 , Jiang Hui of 工银瑞信基金管理有限公司 , Shi Bo of China Asset Management Co., Ltd. , Chen Jialin of HFT Investment Management 海富通基金管理有限公司 , Lü Jun of 上投摩根基金管理有限公司 , Xu Dacheng of 富国基金管理有限公司 , and Cai Ming of Bosera Asset Management Co. all made the leap, becoming the first wave of pioneers in China's burgeoning hedge funds landscape.

The year 2007 saw the rise of several prominent China early hedge funds. Time has passed between 2007 and now, and going from mutual funds to hedge funds is a survivor's game for a few. Zhao Jun's Springs Capital , Jiang Hui's Beijing StarRock Investment Management Co., Ltd., Chen Jialin's Shanghai MegaTrust Investment Management Co., Ltd. and Lü Jun's CongRong Investment Management Co., Ltd., all emerged as industry leaders, solidifying their positions as major players in the market currently.Others after experiencing initial success, ultimately faltered, fading into the annals of history.

Amidst this frenzy, a new mutal fund star emerged. Mr.Wang Yawei, still relatively unknown, managed to achieve a remarkable 226.24% return on his China Asset Management Co., Ltd. Large Cap Selected Mix(F.000011), securing the title of champion for the year and setting a record for the highest annual return in the history of Chinese mutual funds.

For all involved in China's private equity sector, 2007 was a year of relentless momentum. Whether driven by ambition or necessity, everyone was racing forward. No industry was off-limits, no location was too far. It was a whirlwind of activity, leaving even observers in awe of the dedication and drive of those within the industry.

The year 2007 marked a turning point for China's private funds sector. It was a year of explosive growth, high stakes, and dramatic shifts. It was a year that would forever be etched in the memory of those who lived through it, a testament to the relentless pursuit of opportunity and the undeniable power of the market.

(To be continued...)

Reference：

1. The First CNY Private Equity Forum：https://www.gov.cn/jrzg/2007-09/06/content_740697.htm
2. Profile of Mutual Fund Manager Mr. Wang Yawei: https://fund.eastmoney.com/manager/30404185.html