Core Insights - The rise of "initiated funds" has led to a significant number of funds facing liquidation due to not meeting the 200 million yuan threshold after three years [1][2] - Despite the high rate of liquidation, initiated funds remain a key strategy for fund companies, raising questions about their sustainability and operational costs [4][5] Group 1: Fund Liquidation Trends - As of July 15, 2023, 43 initiated funds have been liquidated this year due to failing to reach the required 200 million yuan, marking a historical high [1][2] - The average decline in value for these funds over three years is 18.65%, with nearly half experiencing a drop of over 20% [3][4] - Specific sectors like renewable energy and healthcare have seen significant performance issues, with some funds reporting cumulative returns as low as -53.43% [2][3] Group 2: Fund Company Strategies - Fund companies continue to launch initiated funds despite the risks, with over 404 such funds issued in 2023 alone [4][5] - The relatively relaxed establishment conditions for initiated funds allow companies to quickly enter niche markets and develop new fund managers [6][7] - Initiated funds serve as a "incubation" platform for new strategies and managers, providing opportunities in less recognized sectors [6][7] Group 3: Future Outlook - As of mid-July 2023, 183 initiated funds are approaching their three-year mark, with 98 of them still below the 200 million yuan threshold, indicating potential future liquidations [7] - Some initiated funds have successfully surpassed the threshold, such as the Yongying Advanced Manufacturing Fund, which has achieved a cumulative return of 82.35% [7]

Core Viewpoint - The Hong Kong stock market has shown strong performance since 2025, with significant inflows into Hong Kong-themed ETFs, leading to record high fund shares and increased issuance of related funds by asset management companies [1][3]. Fund Inflows - As of June 17, 2023, Hong Kong-themed ETFs have seen a net inflow of over 55 billion yuan this year, with major investments in internet, technology, innovative pharmaceuticals, and dividend sectors [3]. - Since the beginning of June, net inflows into these ETFs exceeded 2.5 billion yuan, with approximately 5 billion yuan flowing in during the past week despite market fluctuations [3]. Record High Fund Shares - Several Hong Kong-themed ETFs have reached historical highs in terms of shares and scale. For instance, the Huatai-PineBridge Hong Kong Stock Connect Innovative Pharmaceutical ETF has a share count of 4.328 billion and a scale of 6.538 billion yuan, marking increases of over 500% and 900% respectively this year [4]. - Other ETFs, such as the Yinhua Hong Kong Innovative Pharmaceutical ETF and the E Fund Hang Seng Dividend Low Volatility ETF, have also achieved record high shares and scales [4]. Fund Company Activity - Fund companies are actively increasing their presence in the Hong Kong-themed fund market, with 9 out of 85 new funds currently being issued related to Hong Kong, focusing on technology, innovative pharmaceuticals, consumption, and automotive sectors [7][8]. - Notable funds being launched include the Huatai-PineBridge National Index Hong Kong Stock Connect Consumption ETF and the Southern National Index Hong Kong Stock Connect Technology ETF [9]. Market Outlook - The future trajectory of the Hong Kong market is expected to be driven by sustained capital inflows, with competitive valuations compared to international markets. The Hong Kong market's pricing anchor remains high due to overseas interest rates [9]. - Analysts suggest that the market's performance will hinge on two main factors: the progress of Sino-U.S. trade negotiations and the recovery of the domestic economic fundamentals under supportive policies [9].