Equity funds in China turned in a slightly better performance last month, posting an average return of 2.04% compared with a steep average loss of 18.46% in June, according to Lipper data. However, the funds' performance for the first seven months of 2008 is still a disappointing average loss of 42.22%.

Qualified domestic institutional investor (QDII) funds underperformed in July with an average decline of 1.34%, bringing the average loss for the first seven months of this year to 21.72%. The QDII program allows institutional investors to move funds overseas as part of the liberalisation of China's capital account.

Qualified foreign institutional investor (QFII) funds rose slightly in July, with an average return of 0.74%. Actively managed QFII funds outperformed passively managed funds and had lower volatility.

The total net assets of the 19 QFII funds tracked by Lipper last month slid to $7.374 billion in July from $6.619 billion in June. Belgian finan...

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