Chinese mutual funds’ assets under management (AUM) dropped 6% during the first six months of the year to $362 billion, Reuters reports. Due to the poor performance, investors’ interest in mutual fund products is dropping, said Zhang Haochuan, head of research at Shanghai-based fund consultancy Z-Ben Advisors.

The number of mutual fund units in China declined 6.3% in 2010 to nearly $336.71 billion. Chinese equity funds reported negative returns of 7.9% on average during the January-June period. Chinese trust companies managed $480 billion worth of assets in 2010, as per KPMG.

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