Broad rally extends, driving Hang Seng to 6month highs
Dozens of mutual funds launch to catch mood
Investors warn on chasing tourism, property gains

SHANGHAISINGAPORE Jan 6 Reuters Chinese investors are doubling down on economic recovery bets, with a flurry of new fund launches this week riding on optimism about an end to COVID restrictions, though money managers warn the next wave of market gains will be less broadbased.

Both China39;s bluechip CSI300 Index and the Shanghai Composite Index have gained more than 2 in a shortened trading week, as markets cheered Beijing39;s abrupt end to lockdowns and travel quarantine.

More than 30 mutual funds launched this week, mostly equityfocused, offering vehicles for recovery bets. Last month sector specific exchangetraded funds drew more than 2.5 billion yuan 364 million in net inflows, according to Sinolink Securities, as investors sought exposure to tech, new energy and defence.

Hong Kong39;s Hang Seng jumped as much as 8 to sixmonth highs this week.

But with tourism and hotel and catering shares gaining more than 20 since November, and mainlandChina developers39; stocks nearly doubling since the end of October, some say the trade is now feeling too crowded.

Travel and leisure stocks have already priced in a quite optimistic recovery, and become pretty crowded trades. We need to be careful here, said Qi Wang, CEO of MegaTrust Investment HK, who cautions the road ahead might be bumpy.

These days, homebuyers … lack…