Core Viewpoint - The article highlights the challenges faced by foreign-funded public funds in the bond fund sector, where despite a significant number of products, many are struggling with small scales and poor performance, leading to potential fund terminations [2][3][10]. Summary by Sections Market Overview - As of May 19, the total number of bond funds in the market exceeded 3,800, with a total scale surpassing 10.1 trillion yuan. However, foreign-funded public funds only manage 73 bond funds with a combined scale of approximately 117.9 billion yuan, accounting for about 1.17% of the total market [2][3]. Product Performance - Many foreign-funded bond funds are experiencing a "miniaturization" effect, with nearly 30% of their products having scales below 200 million yuan. For instance, the Fidelity China Government Bond Fund faced significant redemptions, dropping from an initial scale of 2.4 billion yuan to 30 million yuan within eight months [2][6][8]. Challenges Faced - Foreign-funded public funds are encountering multiple challenges, including a lack of competitive channels and a cautious approach to bond selection due to risk control considerations. This has resulted in smaller scales and insufficient yield competitiveness for their bond funds [3][8]. Recent Developments - In 2024, foreign-funded public funds have focused on expanding their bond fund offerings, with several new products launched. However, many of these funds have not maintained their initial scales, with significant reductions observed shortly after launch [4][5][6]. Performance Comparison - The average yield of foreign-funded bond funds is 0.47%, which is lower than the overall market average of 0.63%. Some funds have recorded negative returns, indicating performance issues that may contribute to their inability to retain scale [10][11]. Market Dynamics - The bond fund market has seen a contraction in scale, particularly in pure bond funds, which have experienced net redemptions. As of the end of the first quarter, the total scale of bond funds was approximately 10.07 trillion yuan, a decrease of nearly 482 billion yuan compared to the end of 2024 [11].

Core Viewpoint - Foreign-funded public funds are facing challenges in the bond fund sector, with a significant number of their products experiencing scale shrinkage and underperformance in returns [1][6][7]. Group 1: Market Overview - As of May 19, the total number of bond funds in the market exceeded 3,800, with a total scale surpassing 10.1 trillion yuan [1]. - Foreign-funded public funds have only 73 bond funds with a combined scale of approximately 117.9 billion yuan, accounting for about 1.17% of the total market [1][2]. Group 2: Product Performance - The Fidelity China Bond 0-2 Year Government Bond Fund faced significant redemptions, dropping from an initial scale of 2.4 billion yuan to 30 million yuan within eight months [1][3]. - Many foreign-funded bond funds, despite initial successful fundraising, have struggled to maintain their scale, with some funds shrinking significantly post-launch [3][4]. Group 3: Challenges Faced - Foreign-funded public funds are at a disadvantage in channel resources and face challenges in product differentiation due to market homogenization [2][6]. - The local adaptation of foreign-funded funds in the Chinese market is limited, affecting their ability to meet local investor needs [6]. Group 4: Performance Metrics - The average yield of foreign-funded public bond funds is 0.47%, underperforming the overall market average of 0.63% [7]. - Over 40% of foreign-funded bond funds have failed to outperform their performance benchmarks since inception [7]. Group 5: Market Trends - The bond fund market has seen a contraction, with a reduction of nearly 482 billion yuan in total scale by the end of the first quarter of 2024 [8].