Bond funds dominated new mutual-fund issuances in the first quarter in China, as policy loosening hopes drove investors to haven assets as the nascent recovery in stocks remains fragile after an unprecedented three years of losses.

Fixed-income products made up three quarters of the 243.4 billion yuan (US$33.6 billion) mutual-fund issuances in the first three months of 2024, according to data from Wind Information. Equity-focus funds accounted for about 14 per cent of the offerings and…