HONG KONG, June 9 Reuters Money managers in China are struggling to lure retail investors, with fundraising by mutual funds in the first five months of the year hitting the lowest in four years and few betting on a nearterm rebound, amid diminishing returns and economic challenges.

More than 200 million Chinese retail investors, sitting on billions of yuan in savings, have turned bearish on equities and are instead doubling down on safer assets such as deposits and treasury savings bonds, amid a sputtering economic recovery and rising unemployment.

Newly launched funds raised a total of 432.1 billion yuan 61 billion in the first five months, the smallest amount since the same period in 2019, according to data complied by ZBen Advisors, a fund industry consulting firm.

The number is even lower than that of 2022 when many Chinese cities were under strict COVID19 lockdowns, and is only onethird of the same period in 2021.

The trend underscores the challenges Beijing faces in restoring confidence in local markets as the country39;s postpandemic recovery loses steam, which has also prompted foreign investors to sell Chinese shares.

China39;s benchmark CSI 300, which has posted two straight years of losses, has given up all of its early 2023 gains after a recent slew of disappointing consumption, factory and trade data. As of Thursday39;s close, the index was down 1.3 yeartodate.

The wealth effect is missing, said Jiao Jinyuan, director of online distribution at China…