Core Viewpoint - The release of the "Action Plan for Promoting the High-Quality Development of Public Funds" signifies a profound systemic transformation in China's public fund industry, outlining 25 measures to guide future development and emphasizing the importance of enhancing core investment research capabilities to create sustainable returns for investors [1][10]. Group 1: Investment Research Capability - Investment research capability is identified as crucial for fund companies to serve investors and generate long-term returns, with a focus on establishing a comprehensive evaluation system and promoting a collaborative team-based approach to enhance overall investment efficiency [2]. - The industry is moving away from a "lone warrior" model to a team-oriented structure, with companies like Yinhua Fund implementing an "industrialized" investment system to integrate individual expertise into scalable capabilities [2]. Group 2: Floating Fee Rate Funds - The plan advocates for the promotion of floating fee rate funds that align the interests of fund managers with those of investors, allowing management fees to be adjusted based on actual fund performance [3][4]. - This mechanism encourages long-term holding by investors and incentivizes fund managers to enhance their active management capabilities, thereby fostering a culture of rational investment [3]. Group 3: Performance Benchmarking - The establishment of regulatory guidelines for performance benchmarks aims to ensure that fund companies adhere to strict standards in setting, modifying, and disclosing benchmarks, which will help clarify product positioning and investment strategies [6]. - Yinhua Fund is committed to developing a benchmark system that reflects the investment style of fund managers, thereby enhancing investor confidence and promoting market health [6]. Group 4: Long-Term Assessment and Incentives - The plan proposes reforms to the performance assessment mechanisms of fund companies, emphasizing long-term investment returns over short-term metrics, with a requirement that long-term performance assessments account for at least 80% of evaluations [7]. - Yinhua Fund follows a long-term orientation in its performance assessments, focusing on three to five-year periods to mitigate short-termism in investment behavior [7]. Group 5: Innovation in Equity Fund Products - The industry is encouraged to innovate in equity fund products, with ETFs emerging as a key focus area, reflecting a shift in investor attitudes and reaching a scale of over 5 trillion yuan by August 2025 [8][9]. - Yinhua Fund has developed a diverse product matrix covering core indices and is actively launching new ETF products aligned with national strategic needs, enhancing its offerings in various market conditions [9].

Group 1 - The core of investment research capability lies in "people" [4] - The public fund industry is focusing on long-termism, emphasizing the need for a shift from scale-oriented to investor return-oriented strategies [3][6] - Recent regulatory changes aim to optimize fee structures and encourage long-term investment practices among fund companies [3][6] Group 2 - Investment teams should cultivate a culture of deep research and long-term investment understanding, ensuring the transmission of investment philosophy across generations [4][5] - A systematic mechanism for talent development is essential, including clear career paths and mentorship for new researchers [4][5] - Breaking down research silos and fostering collaboration among different research fields is crucial for identifying long-term competitive investment opportunities [5] Group 3 - Long-term performance assessment and innovative technology are vital for supporting investment research [6][7] - Emphasis on long-term metrics in performance evaluations helps align fund managers' interests with those of investors [7][8] - The integration of financial technology enhances research efficiency and promotes a focus on fundamental value discovery [8] Group 4 - Continuous development of investment products that cater to long-term investor needs is necessary, alongside efforts to reduce management fees [8] - Engaging in investor education and providing advisory services can help maintain rational investment behavior during market fluctuations [8]

Group 1 - The core of investment research capability lies in "people," emphasizing the importance of talent development and long-term investment philosophy in the public fund industry [2][3][4] - The transition from scale-oriented to investor return-oriented strategies is highlighted by regulatory guidance, aiming to create long-term stable returns for investors [1][4] - The recent fee reform in public funds encourages adherence to long-term investment principles through optimized redemption fee mechanisms and sales service fee structures [1][4] Group 2 - A systematic mechanism for talent growth and effective transmission of investment philosophy is essential for the implementation of long-termism in public funds [2][3] - Investment teams are encouraged to break down research silos and collaborate across different fields to enhance comprehensive research and investment decision-making [3][6] - Long-term performance assessment and technology innovation are critical for empowering investment research, with a focus on process management and long-term performance metrics [4][5][6] Group 3 - The emphasis on long-term performance in fund manager assessments, with higher weight given to three and five-year performance metrics, aims to align fund managers' interests with those of investors [5][6] - The integration of financial technology into investment research processes is necessary to enhance efficiency and focus on long-term value discovery [5][6] - Continuous development of investment products that cater to long-term investor needs and reducing management fees are strategies to lower the long-term holding costs for investors [6]

Core Viewpoint - Under the low interest rate environment, brokerage asset management must find its strategic positioning and enhance its ability to serve the real economy while improving active management capabilities to stand out in a competitive market [3][4]. Group 1: Strengthening Service to the Real Economy - Serving the real economy is fundamental for financial institutions and is essential for brokerage asset management to thrive in a low interest rate environment. This can be achieved by accurately identifying positioning, aligning with policy directions, and enhancing connections between resident wealth and the real economy [6]. - Accurate positioning involves focusing on core responsibilities and establishing a long-term strategic direction that prioritizes financial functionality and addresses the financing needs of the real economy [6]. - Emphasizing policy alignment allows brokerage asset management to channel resources into areas that align with national strategies, such as technology finance, green finance, inclusive finance, pension finance, and digital finance [6][7]. - Enhancing connections between resident wealth and the real economy requires a focus on product innovation, resource allocation, and risk management to meet the growing demand for wealth preservation and appreciation among residents [7]. Group 2: Enhancing Research and Investment Capabilities - Research and investment capabilities are the core competitiveness of brokerage asset management and are crucial for active management, product creation, and client service [9]. - Strengthening the research and investment system involves strategic planning, organizational structure optimization, and talent management to balance various factors such as long-term and short-term goals, risk and return, and research and application [9][10]. - Quality assurance in research and investment can be achieved through methodological upgrades, process improvements, and a comprehensive evaluation system that includes accuracy, consistency, and impact [10][11]. - Technological support for research and investment should focus on integrating distributed computing, artificial intelligence, and data science to enhance the efficiency and effectiveness of research processes [11]. Group 3: Improving Asset Allocation Capabilities - Asset allocation is a key strategy for brokerage asset management to navigate the low interest rate environment and the shrinking returns of traditional fixed-income assets [13]. - Optimizing the asset allocation framework involves deepening the research on strategic and tactical asset allocation methods and enhancing the application of quantitative models [13][14]. - Diversifying asset allocation strategies is essential in a competitive market, necessitating a broader range of investment strategies and the establishment of a comprehensive management model for strategy verification and performance evaluation [14].

Core Viewpoint - The asset management business of CITIC Securities achieved a net income of 5.444 billion yuan in the first half of 2025, marking a year-on-year growth of 10.77%, maintaining its position as the industry leader and the only brokerage with net income exceeding 5 billion yuan in asset management [1][2]. Group 1: Performance of Leading Brokerages - In the first half of 2025, the total net income from asset management for 42 listed brokerages reached 21.195 billion yuan [1][2]. - CITIC Securities ranked first with a net income of 5.444 billion yuan, followed by GF Securities with 3.669 billion yuan, and Guotai Junan with 2.578 billion yuan [2]. - Nine listed brokerages reported net income exceeding 600 million yuan in asset management, indicating a strong performance among leading firms [1][2]. Group 2: Strategies of Small and Medium-sized Brokerages - Small and medium-sized brokerages are focusing on niche markets to differentiate themselves, with some achieving significant growth in net income [4]. - For instance, Changcheng Securities reported a net income of 25 million yuan, a year-on-year increase of 79.27%, while Guojin Securities saw a 45.16% increase with a net income of 62 million yuan [4]. - These firms are shifting from scale competition to innovation in products and services, enhancing their asset management capabilities [4]. Group 3: Development Plans and Focus Areas - Many brokerages are emphasizing the enhancement of research and investment capabilities, aiming to improve product performance and active management [1][6]. - CITIC Securities plans to strengthen its asset allocation system and enhance its strategy research layout, focusing on high-quality product output [6]. - Guohai Securities aims to deepen its investment research and improve customer service capabilities, while also enhancing digital operations through data-driven approaches [6].

Core Insights - The A-share listed companies' semi-annual reports have shown a significant divergence in the operating and net profit situations of 64 public fund companies, with many larger firms recovering while smaller firms continue to struggle [1] Group 1: Company Performance - E Fund leads the industry with a revenue of 58.96 billion yuan, a year-on-year increase of 9.71%, and a net profit of 18.77 billion yuan, up 23.84% [2][3] - Other notable companies include Huaxia Fund with 42.58 billion yuan in revenue, and GF Fund, Southern Fund, and Fortune Fund all exceeding 30 billion yuan in revenue [3] - GF Fund reported the highest net profit growth among major firms at 43.54%, with a net profit of 11.8 billion yuan [3] Group 2: Small and Medium Fund Companies - Several small public funds have shown improvement, with Ruida Fund achieving revenue of 281.5 thousand yuan, marking a return to profitability [4] - However, many medium-sized firms like Tianhong Fund, China Merchants Fund, and Huitianfu Fund experienced declines in net profit, with decreases of 2%, 6.81%, and 30.43% respectively [4] - The industry continues to face challenges, particularly for small and medium-sized firms, which are struggling with revenue and profit declines [5] Group 3: Industry Trends - The public fund industry has maintained rapid growth, with total assets exceeding 35 trillion yuan as of July [5] - The industry is experiencing a "Matthew effect," where larger firms benefit from scale and show stronger resilience against market pressures [5] - Experts suggest that smaller firms should focus on niche markets and enhance their research capabilities to adapt to ongoing challenges [5]

Core Insights - The asset management industry in China has evolved significantly since its inception in 1997, entering a new phase characterized by compliance, standardization, and transparency following the introduction of the "Asset Management New Regulations" [1] - A recent evaluation of asset management institutions highlights the competitive landscape across various segments, including bank wealth management, public funds, securities asset management, insurance asset management, and trusts [1] Product Performance - Smaller wealth management firms have excelled in fixed-income products, with seven out of the top ten performers in the last three years being city commercial banks or rural commercial banks [2] - Some small public funds have also performed well with pure bond funds, but their active equity funds have underperformed, indicating a need for improvement in equity investment capabilities [2] Institutional Operations - Profitability concentration among asset management institutions is increasing, with major players like China Life Asset Management, Taikang Asset Management, and Ping An Asset Management accounting for over 50% of the industry's total profit in 2024 [3] - The trust industry is facing significant challenges, with a 45.52% decline in profits from 2023 to 2024, largely due to risks in the real estate sector and industry transformation [3] Compliance Requirements - Compliance and public sentiment risks are becoming increasingly important for asset management institutions, with stricter regulations leading to a rise in penalties, particularly for trust companies [5][6] - Trust companies had the highest number of negative public sentiments in 2024, with 55 companies reporting 1,564 incidents, primarily related to underlying asset risks [6] Research and Investment Capability - The complexity of the global macro environment and domestic economic transformation has heightened the importance of research and investment capabilities, with top asset management firms leveraging strong research teams to maintain competitive advantages [8] - Enhanced research capabilities allow institutions to better analyze market trends and identify investment opportunities, which is crucial for generating excess returns [8] Technological Empowerment - Technology is increasingly empowering the entire asset management chain, from research and investment to risk control and operations, with advancements in AI and data analytics playing a key role [10][11] - Real-time risk monitoring and predictive analytics are becoming standard practices, enabling institutions to manage various risks effectively [11] Product Innovation - Asset management products are diversifying in response to evolving client needs, with innovations in themes, structures, and asset classes, including the rise of "fixed income plus" products [12][13] - The popularity of alternative assets like REITs and gold ETFs is increasing, reflecting a shift towards more diversified investment strategies [12][13] Recommendations for Competitiveness - Asset management institutions are advised to strengthen their research capabilities, integrate asset and wealth management, and leverage digital technologies to enhance operational efficiency [14][15][16] - Emphasizing multi-asset allocation and risk hedging strategies is essential to meet clients' demands for stable returns in a low-yield environment [17][18] - Developing agile internal mechanisms to respond quickly to market opportunities is critical for maintaining competitive advantages in a rapidly changing landscape [20]

Group 1 - Zhang Kun has resigned as the Deputy General Manager of E Fund but will continue to serve as a fund manager, focusing on investment management [1][3][4] - This trend of fund managers stepping down from executive roles to concentrate on investment has been observed in the public fund industry, with notable figures like Chen Hao and Xiao Nan also resigning from similar positions earlier this year [2][7] - The public fund industry has seen a shift from the previous norm of "promotion for investment excellence" to a reverse trend where many investment professionals are prioritizing their investment roles over management duties [8] Group 2 - Zhang Kun has managed four funds with a total scale of approximately 608 billion yuan as of the end of the first quarter this year, and he is recognized as a core member of E Fund's active equity investment team [4][5] - Despite recent performance challenges in the funds managed by Zhang Kun, his investment philosophy and portfolio have remained consistent, indicating a stable investment style [5] - The recent trend of high-level fund managers focusing on investment rather than management roles is seen as beneficial for enhancing the investment research capabilities of their firms, aligning with the industry's push for high-quality development [9]