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China mutual funds’ private placement returns shrink as discounts narrow

Chinese mutual funds’ allocations in A-share private placements exceeded 47 billion yuan by Sept 6, up over 160% year-on-year, amid active trading. However, recent projects like Jiangbolong saw issuance prices above secondary market prices, challenging the ‘discounted buying’ strategy. Narrowing discounts and market volatility are shifting focus to fundamental analysis.

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