July 8, 2015 Comments (0) Blog, Securities Fraud

U.S. funds investing in China looking at potential losses

(Last Updated On: July 21, 2015)

With the Chinese market in the midst of a correction, many investors in Chinese focused funds may be concerned for their investments. We are paying close attention to certain funds with high involvement in China, and, in particular, the ways in which broker/dealers marketed and sold the products to investors.

Investors were likely attracted to the growth in China over the last year or so.  Unfortunately, it appears that certain financial advisors may have failed to adequately disclose the risks of China focused funds to their clients (particularly in light of the funds overconcentration of investments in China and the likelihood of a correction after enormous recent growth).

The White Law Group is investigating the liability that brokerage firms may have for recommending these risky investments. Brokerage firms are required to perform adequate due diligence on any investment they recommend and to adequately disclose the risks of any investment. Additionally, brokerage firms are required to ensure that all investment recommendations made are suitable in light of the client’s age, investment experience, investment objectives, net worth, and income.

The following is a list of funds that may be impacted by China’s current economic state:

Matthews China Dividend Fund                (MCDFX)              31.09% of Net Assets in 10 different Chinese holdings

Fidelity China Region Fund                           (FHKAX)               31.57% of Net Assets in 10 different Chinese holdings

RS China Fund                                               (RSCHX)               48% of Net Assets in 10 different Chinese holdings

JPMorgan China Region Fund               (JCHAX)                                42.69% of Net Assets in 10 different Chinese holdings

AllianzGI China Equity Fund            (ALQAX)         56.41%  of Net Assets in 10 different Chinese holdings

Matthews China Fund                        (MCHFX)         29.33% of Net Assets in 9 different Chinese holdings

Oberweis China Opportunities Fund  (OBCHX)         39.16% of Net Assets in 10 different Chinese holdings

Guinness Atkinson China And Hong Kong Fund     (ICHKX)           41.54% of Net Assets in 9 different Chinese holdings

Invesco China Fund                                        (AACFX)          53.06% of Net Assets in 10 different Chinese holdings

U.S. Global Investors China Region Fund     (USCOX)          31.4% of Net Assets in 9 different Chinese holdings

 

To determine whether you may be able to recover investment losses incurred as a result of your purchase of one of these China focused funds, please contact The White Law Group at 312-238-9650 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.

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