According to the Asset Management Association of China (AMAC), money raised by newly formed private funds in China fell by 43.58% in January compared to the previous month.

A monthly report issued by AMAC on Feb. 22 showed a remarkable decrease of new private funds, a drop of 19.79% from a month prior. The scale of further fundraising attempts was about $15.16 billion, down 43.58% month-on-month.

The Private Securities Investment Fund added 2,681 funds, accounting for 73.76% of the new fund launches. However, it also witnessed a significant drop of 59.47%.

Besides, private equity and venture capital fundraising declined by 25% and 17%, respectively. In January, this downward trend generated only 385 private equity funds and 567 venture capital funds.

According to Reuters, a slump in the private equity fund market added to the indications of economic headwinds, the reflections of the regulatory crackdown on the tech sector, and the uncertainties from US monetary tightening in China.

The fast escalation of the Russia-Ukraine crisis has also exacerbated investor anxiety, making investor risk appetite shrink rapidly.

Global stock markets slid already on Feb. 22, when Washington announced the first round of sanctions against Russia for what it deemed the beginning of a Ukraine invasion.

On that day, the Shanghai Composite (SHCOMP) in China fell 1%. The Hang Seng Index (HSI) in Hong Kong plummeted 2.8 percent, the most daily drop in five months.

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