Morningstar(US:MORN) Morningstar晨星·2026-01-22 01:06Core Viewpoint - The Hong Kong mutual fund market in 2025 experienced significant changes in capital flows, influenced by policy support, performance divergence between domestic and overseas assets, and adjustments in investor preferences [2]. Group 1: Market Dynamics - The sales limit for Hong Kong mutual funds to mainland investors was raised from 50% to 80% starting January 1, leading to a surge in demand at the beginning of the year [2]. - Despite a brief period of net outflow in Q2 due to external factors, the market saw a recovery in capital inflows in Q3 and Q4, with fixed income, equity, and mixed mutual funds ending the year with positive net inflows [2]. Group 2: Asset Class Performance - Fixed income products attracted the most capital inflows in 2025, driven by low domestic interest rates and increased sales quotas for mainland investors, with significant inflows in Q1 [2]. - The Morgan International Bond Fund recorded a net inflow of 13 billion yuan, leading the inflow rankings, followed by several Asian bond funds with inflows around 8 billion yuan each [2]. - Equity products ended the year with slight net inflows, recovering from earlier outflows, with the Morgan Asia Dividend Fund and East Asia United Global Equity Fund being notable performers [2]. - Mixed funds saw moderate changes in the first three quarters but experienced significant inflows in Q4, with the Swiss Pictet Strategy Income Fund being the top performer in this category [2]. Group 3: Fund Company Performance - East Asia United led the capital inflows in the past three months, primarily due to strong subscriptions for its East Asia United Global Equity Fund in Q4 [8]. - Morgan topped the annual net inflow rankings with 22.6 billion yuan, followed by HSBC and Bank of China Hong Kong, each exceeding 6 billion yuan in net inflows [8]. - Schroders faced a net outflow of over 2.7 billion yuan for the year, ranking last among fund companies [8]. Group 4: Market Share - As of December 2025, Morgan and HSBC held the top two positions in market share for Hong Kong mutual funds, with asset management sizes of 80 billion yuan and 32.5 billion yuan, respectively, together accounting for over 60% of the total market [13].