Core Viewpoint - The recent management changes at Taiping Fund, including the resignation of General Manager Cao Qi and Deputy General Manager Deng Xianhu, raise concerns about the stability and governance of the company, particularly in light of recent regulatory penalties [2][4][5]. Management Changes - Taiping Fund announced the resignation of General Manager Cao Qi and Deputy General Manager Deng Xianhu due to "work adjustments," with no new positions assigned [2][3]. - The frequency of management changes at Taiping Fund has been notable since Taiping Insurance became the controlling shareholder in 2016, indicating potential governance issues [3][4]. Regulatory Context - The management changes are linked to a regulatory penalty imposed on Taiping Asset Management in July 2025, which involved a fine of 6.78 million yuan for various compliance violations, implicating Cao Qi and Deng Xianhu among others [5][7]. - The violations occurred during the tenure of both executives, raising questions about the legitimacy of the "work adjustment" narrative [7][8]. Governance and Strategic Challenges - The high turnover in management reflects deeper conflicts between compliance and market-oriented development within insurance-related public funds [4][9]. - The current interim General Manager, Liu Dong, has limited experience in public fund management, which adds uncertainty to the company's strategic direction [10][11]. Business Structure Imbalance - As of October 17, 2025, Taiping Fund's total assets under management were 59.41 billion yuan, with a significant reliance on bond funds (46.99 billion yuan) compared to only about 5 billion yuan in equity and mixed funds, indicating a structural imbalance [14][15]. - The over-reliance on fixed-income products poses risks, as growth is primarily driven by institutional investments rather than competitive active management [14][15]. Performance and Strategic Direction - Taiping Fund has struggled to establish a competitive presence in equity investments, with recent products underperforming significantly, such as the Taiping Flexible Allocation Fund, which recorded a total return of -56.5% [15][16]. - To address these challenges, the company needs to develop a differentiated strategy that leverages its insurance background while enhancing its research and investment capabilities [15][16].