"Your madness, I'll foot the bill!" Over the past six years, the impression that China Post Fund has left on the market is "aggressive pursuit", "radical style", and "reckless". However, it's the vast number of China Post Fund holders who end up paying the price. Success comes from being aggressive, but so does failure. It's precisely under this aggressive style that in the past five and a half years, China Post Fund has cumulatively caused losses of nearly 13 billion yuan for its vast number of holders, while the company itself has earned 2.66 billion yuan in management fees.
The Madness of 2007
Public information shows that China Post Fund was established on May 8, 2006. Currently, all six products under the company are equity-related, which also gives us a glimpse into the company's operational style. The total share volume of these six products is 42.042 billion shares, with a total asset value of 25.145 billion yuan, placing it in the middle ranks. One could say that China Post Fund was born in a great era, hitting the jackpot right out of the gate by capitalizing on the perfect timing of the A-share market's rise, and its high-profile operational style brought about its glory in 2007.
In September 2006, China Post Fund launched its first product, China Post Core Selection, with an initial offering of 1.588 billion shares. Due to fund manager Peng Xu's high-position operation style, by the end of 2007, the fund's compound unit net value growth rate reached as high as 191.47%, with the net value growth rate once reaching as high as 226.52%, ranking first in yield among similar funds within half a year.
In August 2007, the company launched its second fund, China Post Core Growth, again managed by Peng Xu. Due to the exceptionally hot A-share market at the time, investors were enthusiastic about subscribing, causing the fund to exceed its upper limit of 15 billion yuan on the first day of issuance. After opening subscriptions and redemptions a month later, the scale grew by another 25.1 billion shares in just four days, creating a sales record of 60 billion yuan.