Qualified domestic institutional investor (QDII) funds, posted an
average return of 5.67% last month, reversing their 9.58% average loss
in March. The funds are down 12% year-to-date.

Qualified foreign institutional investors (QFII) posted an average
return 3.00%, after declining 16.39% in March. The funds are down
21.89% year-to-date. The QFII funds with the highest amount of net
sales in April were iShares FTSE/Xinhua A50 China Tracker and W.I.S.E.-
CSI 300 China Tracker. The former's AUM increased 265% and the
latter’s gained 229%. The AUM of the 19 QFII funds tracked by Lipper
last month rose to $8.39 billion.

China launched the QFII programme in mid-2003 to allow approved
foreign institutions to trade A-shares and bonds on the Shanghai and
Shenzhen exchanges. The programme was part of the government’s efforts
to open China’s capital market and ease controls on the capital
account, under which the yuan isn’t fully convertible.

“Global markets still face challenging issues in the future,” says Xav
Feng, head of research for Taiwan and China at Lipper. “Investors also
need to re-evaluate investment values after the recent euphoria.”

-Asianinvestor Magazine-