Core Viewpoint - The active equity fund market has shown significant recovery in performance, with a notable increase in net asset values and a majority of funds achieving positive returns in 2023 [2][3][10]. Performance Summary - In July, nearly 800 active equity funds reached historical net asset value highs, with 94% of products achieving positive returns and an average annual return of 13.89% [1][2][3]. - The number of funds that doubled their returns this year reached four, with the top-performing fund, Huatai-PB Hong Kong Advantage Selection, achieving a return of 135.23% [2][3]. - The Wind偏股混合基金指数 recorded a return of 14.49% this year, indicating that most active equity fund holders who entered the market in 2023 are now profitable [3]. Fund Manager Performance - Several veteran fund managers have successfully turned around their funds, with notable performances such as Guangfa Growth Navigator achieving an annual return of 88.44% [5]. - Fund managers with over 20 years of experience, such as Guo Jun, have also delivered high returns, with the Bosera New Income fund achieving 27.85% this year [5][6]. - The trend of "using feet to vote" is evident, as funds with sustained excess returns are attracting significant capital inflows, with some funds seeing their sizes increase by over five times in the second quarter [7][10]. Market Dynamics - The recovery in fund performance has led to a weakening of the constraints imposed by fund size on performance, with several large funds reaching new net asset value highs [6]. - Investors are increasingly willing to pursue high-performance funds, moving away from the "fear of heights" mentality that previously dominated the market [8][10]. - Funds that failed to outperform the偏股混合基金指数 have seen their sizes shrink, becoming "mini" funds with less than 50 million yuan in assets [9]. Trust Rebuilding Efforts - Despite the positive performance, many investors remain cautious due to past experiences, leading to a continued decline in the size of some active equity funds [10]. - Fund companies are implementing measures to rebuild trust, including enhancing research capabilities, ensuring transparency, and binding fund manager interests to performance [10][11]. - Regulatory initiatives are also expected to promote high-quality development in the public fund sector, further enhancing investor confidence in active equity funds [11].

Core Insights - The public fund market showed significant profitability in the first half of 2025, with 87% of funds achieving positive returns, highlighting a strong market recovery [1][9][10] - The top-performing funds were dominated by innovative drug and North Exchange theme funds, indicating a trend towards specialized investment strategies [2][3][4][5] Fund Performance - The best-performing fund was Huatai-PineBridge Hong Kong Advantage Selection A, with a net value growth of 86.48%, followed closely by CITIC Securities North Exchange Selection with 82.45% and Great Wall Pharmaceutical Industry Selection A with 75.18% [3][4] - Seven out of the top ten funds were heavily invested in innovative drugs, while two were focused on North Exchange themes, showcasing the effectiveness of concentrated investment strategies [4][5] Market Trends - The first half of 2025 saw a notable performance from sectors such as innovative drugs, North Exchange, humanoid robots, and new consumption, with these themes alternating in prominence [2][3][10] - Analysts predict that the positive trends for innovative drugs and North Exchange themes are likely to continue into the second half of the year, supported by structural opportunities in these sectors [7][8] Overall Market Dynamics - A total of 12,571 funds were analyzed, with 10,949 achieving positive returns, reflecting a broad-based recovery in the public fund market [9] - The market exhibited a "barbell" characteristic, with both high-growth technology stocks and low-valuation, high-dividend stocks performing well, particularly in the banking sector [10] Sector Performance - Certain sectors, such as real estate and food and beverage, underperformed, leading to lower returns for funds heavily invested in these areas [11] - The bond market transitioned from a bull market to a more volatile environment, resulting in weaker performance for fixed-income funds [11]