Chinese public funds see Q4 profits at 4-year high

China's public funds saw a profit of nearly 300 billion yuan ($49 billion) in the final quarter of 2014, the highest quarterly gains in four years, boosted by the recent stock market rally.

A total of 2,226 public funds managed by 88 fund companies saw combined profits of 299.1 billion yuan during this period, according to data compiled, based on these firms' quarterly reports.

Profits of stock funds stood at 204.7 billion yuan, accounting for the biggest share in the total gains, followed by hybrid funds with a profit of 46.7 billion yuan, money funds 21.0 billion yuan, and bond funds 23.2 billion yuan.

Property, finance and electricity shares were favored by public funds during the Oct-Dec period, with Ping An Insurance, Poly Real Estate and Industrial Bank being the top 3 most purchased shares.

In the first quarter this year, fund companies will emphasize blue chips and growth shares when arranging their investment portfolios, according to their reports.

Chinese shares were bullish in the last quarter of 2014, thanks to a recovering economic climate and easing measures from the central government, sending the key Shanghai Composite Index up more than 50 percent year on year by the year-end.

However, recent official moves signaled concerns from policymakers on the wild rally, as securities regulators strengthened control on margin trading while other authorities curbed capital flow into the market.