Core Viewpoint - Xinhua Fund Management Co., Ltd. has officially announced the cancellation of its Zhejiang branch, marking a trend of strategic contraction among small and medium-sized public funds in China [2][7]. Company Summary - Xinhua Fund was established in 2004 and is headquartered in Chongqing, being the first public fund management company in Southwest China. The company has a registered capital of 628 million yuan and manages 46 public funds with an asset management scale of 53.206 billion yuan as of the second quarter of 2025, ranking 84th in the industry [5]. - In March 2023, Xinhua Fund underwent a significant capital increase of 188%, raising its registered capital from approximately 218 million yuan to 628 million yuan, with contributions from shareholders totaling nearly 800 million yuan [5]. - The company plans to use the newly raised funds to strengthen operational capital, explore new business areas, and delve into ESG investments and cross-border asset allocation [5]. Industry Summary - The cancellation of local branches by public fund companies has become increasingly common, with several firms such as Guotou Ruijin Fund, Jinying Fund, and others also shutting down branches in various regions, indicating a broader trend of resource reallocation from less efficient areas to core economic zones [7][8]. - The trend of branch cancellations is primarily observed among small and medium-sized public funds, with a notable increase in the number of cancellations in 2023 compared to previous years [7][8]. - Industry experts suggest that the cancellation of branches does not equate to exiting the market but rather reflects a strategic optimization of resources to enhance competitiveness in core markets [8].