(Yicai Global) Oct. 26 -- China's five-state backed funds, instrumental in the country's efforts to bail out the market in the 2015 stock crash, have sold off their holdings, according to their third quarter reports.

These five funds will deliberate on proposals for termination of their fund contracts, state-backed The Paper reported them as saying today. The liquidations are dependent on their proposals passing. The funds concerned are the China Southern Asset Management Consumption Energy Flexible Allocation Mixed Seed Fund, the Harvest Fund Management New Opportunity Flexible Allocation Mixed Seed Fund, the China Asset Management New Economy Flexible Allocation Mixed Seed Fund, the E Fund Management Ruihui Flexible Fund and the China Merchants Fund Management Fengqing Flexible Allocation Fund.

The bailout funds have begun liquidation and redemption, which marks they have completed their task to stabilize the Chinese stock market and they will be withdrawn, said market participants.

The above five funds were established in 2015 with CNY40 billion (USD5.9 billion) pumped into each when the A-share market index slumped.

These funds' net values have held steady since Sept. 20, and the market speculated that the only possible reason for their survival during the equity market meltdown was selling off their equity holdings. This was finally confirmed in their interim reports.

These funds had been steady, and no redemption had ever occurred in the past. They all disclosed that their respective holdings had been reduced from 40 billion shares to 12 billion shares as of the end of the first quarter, which means 28 billion shares were redeemed. This marked the first time that the bailout funds had been redeemed.

These funds' ending net assets totaled CNY250.2 billion as of late last year, with a floating profit of CNY50.2 billion gained based on the initial CNY200 billion. The growth rate of their net worth has outperformed the Shanghai and Shenzhen 300 index, and the accumulative yield rates of the China Merchants Fund Management Fengqing Flexible Allocation Fund and the E Fund Management Ruihui Flexible Fund both exceed 30 percent.

The yield rate of the China Asset Management New Economy Flexible Allocation Mixed Seed Fund, which is the lowest among the five, is close to 10 percent, according to market data provider Wind.

Editor: William Clegg