Dear Morningstar Client/Friend,


It would not be a stretch to say that China contains the hottest and most widely talked about emerging market in the world. Indeed, as the fastest growing economy in the world, China can boast an average growth rate of 10% for the past 30 years. China’s combined equity market value recently reached $3.07 trillion, making China the world’s third largest stock market, trailing only the United States and Japan.


With China’s dramatic growth in market prospects, comes the rapid development of its fund industry. Like the beginning of any new enterprise, the Chinese fund industry has inherent risks due to uncertainty, but also vast and promising potential. The key to tapping that potential is knowledge of the Chinese fund industry and the Chinese market. We at Morningstar would like to provide you with the information you need to explore China’s limitless opportunities with our quarterlyMorningstar China Fund Spy. Featuring four sections every issue, our analysts bring to light all the information you need to dive into China’s fund industry.

An Eye on the Market
Thoroughly researched and compiled, every issuecontains a review of the Chinese market in the past quarter. Contents cover but are not limited to a synopsis of the stock and bond markets; easy to understand charts, comprehensive fund analysis, and detailed rankings within each fund category.

Expert Analyst Insights
Combining data with expertise, our analysts look at the composition of the market and of various funds to provide you with a streamlined guide of what you need to know. In this section it is provided latest news about the fund industry, funds which are new on the scene and the size of their IPO’s, as well as the cash flows and returns of established funds.

Insiders Scoop
Our analysts are constantly seeking out notable managers of Chinese funds. In rare interviews, they share with us their goals and their strategies, their triumphs and their setbacks. We strive to link the human faces behind the data and the numbers of the market. Prominent investors have included: Tony Zhang, Fund Manager of FT Sealand Flexible Capital and FT Sealand Deep Value Fund, Tao Zhuang, Fund Manager of Huashang Prosperous Growth Stock Fund…

In-depth Featured Report
Every quarter, there is one key aspect of the market that demands our attention and the attention of investors. A compilation of news, trends, and patterns, each featured article is unique and full of valuable information not easily gleaned from the usual outlets. Some of the topics cover the shrinkage of QDII funds, 2009 Morningstar Fund Awards….

Also, a Client Questionnaire is attached by us to hear your valuable comments and suggestions; we are continuously putting efforts to better serve your interest and needs. It is an exciting time for the Chinese economy. For you, institutional executives, international business developers, and asset managers, it is never too early to jump in. Consider the China Fund Spy as your guide and your reference.