Chinese banks raise risk ratings on tech‑focused mutual funds

Since late July, several Chinese banks have announced upgrades to the risk ratings of public mutual funds that invest heavily in semiconductor, chip and AI‑hardware sectors. Ningbo Bank moved the Rongtong Tongxin Flexible Allocation Mixed Fund from medium to medium‑high risk, while Postal Savings Bank upgraded more than 200 products, including Nuoan Balanced Mixed and Minsheng Jiayin Emerging Growth Mixed, to medium‑high risk. Suzhou Bank, Guangdong Nanyue Bank and Shanghai Bank have issued similar notices, targeting mixed‑type funds with high exposure to technology supply‑chain stocks.

The rating changes follow a sharp pullback in the technology sector, which has caused large net‑value swings and accelerated fund outflows. Regulators require banks to apply the higher of the bank’s own assessment or the fund manager’s rating, prompting a more cautious stance than in previous cycles that focused on oil‑related funds. Analysts say the moves reflect tighter risk control and may pressure fund managers to align their own ratings with the banks’ assessments.