Core Viewpoint - Multiple fund companies have announced the termination of their distribution cooperation with Minshang Fund, indicating that the sales agency is likely to exit the public fund distribution market and shift focus to private fund distribution [1][5][6]. Group 1: Termination of Cooperation - Fund companies including Huatai-PB Fund, Everbright Pramerica Fund, and Debon Fund have issued announcements to terminate their sales cooperation with Minshang Fund, effective from specific dates in 2025 [2][4]. - Huatai-PB Fund stated that it will stop Minshang Fund from handling subscription, purchase, regular investment, redemption, and conversion of its funds starting May 26, 2025 [2]. - Everbright Pramerica Fund and Debon Fund have also confirmed similar terminations, with Debon Fund's termination effective from June 12, 2025 [4]. Group 2: Reasons for Termination - The termination of cooperation is reportedly due to Minshang Fund's decision to voluntarily exit the public fund distribution business and transition to private fund distribution [5][6]. - A public fund insider indicated that the decision was initiated by Minshang Fund itself, reflecting a strategic shift in its business model [6]. Group 3: Industry Context - The fund distribution market is undergoing significant changes, with many independent fund sales agencies facing increasing pressure and potential exits from the market [9]. - The China Securities Regulatory Commission (CSRC) has introduced a classification evaluation mechanism for fund sales institutions, which may further influence the dynamics of the fund distribution landscape [9]. - The trend indicates a shift from a "volume-oriented" approach to a focus on "investor profitability," which poses challenges for many smaller third-party distribution agencies [9][11].

Core Viewpoint - The fund distribution market is undergoing a significant reshuffle, with fund companies increasingly terminating sales partnerships with banks due to competitive pressures and regulatory compliance requirements [1][2][3]. Group 1: Termination of Partnerships - Ping An Fund announced the termination of its sales cooperation with Xiamen Bank effective April 28, 2024, meaning investors can no longer conduct various fund transactions through the bank [1]. - Hua An Fund also announced it would end its sales cooperation with Bohai Bank by December 31, 2024, to protect investor rights [2]. Group 2: Market Dynamics - Despite banks holding nearly half of the market share in fund distribution, third-party sales institutions and brokerages are rapidly gaining market share, prompting banks to implement fee discounts to attract investors [1][3]. - As of the end of 2024, banks accounted for approximately 45% of the non-monetary fund holdings among the top 100 distribution institutions, but their dominance is being challenged by the rise of third-party sales platforms [3]. Group 3: Revenue Impact - The revenue from fund distribution for banks is under pressure, with significant declines reported. For instance, China Merchants Bank's fund distribution income fell by 19.58% year-on-year to 4.165 billion yuan in 2024 [4]. - The decline in income is attributed to reduced fund fees and a drop in the holdings of equity funds, leading to a decrease in commission income across various banks [4]. Group 4: Strategic Shifts - Banks are shifting from a "price war" strategy to a "value war," focusing on creating differentiated competitive advantages through customized products and services [5][6]. - Smaller banks are increasingly collaborating with various financial institutions to offer diversified distribution products, leveraging regional advantages to meet local customer needs [6]. Group 5: Regulatory Environment - Regulatory scrutiny on bank fund distribution is intensifying, with new guidelines requiring banks to enhance compliance management and risk assessment processes [7][8]. - Instances of regulatory penalties for banks due to violations in fund sales practices highlight the need for improved compliance and risk management frameworks [8].