Chinese mutual funds resort to commodities, reforms



China's mutual fund industry is endeavoring to design investment instruments relative to local commodity futures, speculating the plans to overturn oversupply in the resource sector will bolster prices for raw materials. The funds seek to move out of fixed-income and stocks, which have no outright return in the light of turmoil last year, which led to more than 50% plunge on share markets and recording multi-year lows on bond yields. In August 2015, UBS-SDIC Fund Management unveiled the first Chinese mutual fund investing in domestic commodities, tied to silver futures on the Shanghai Futures Exchange.

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