Core Viewpoint - The public fund industry in China experienced significant growth in both fixed income and equity fund sizes in Q2 2025, driven by market fluctuations and investor preferences for passive investment products [2][4][6]. Fund Size Growth - As of the end of Q2 2025, the total public fund management size reached 34.05 trillion yuan, an increase of 2.24 trillion yuan or 7% from the previous quarter [4]. - Fixed income funds saw a growth of over 860 billion yuan, while equity funds, particularly pure index funds, increased by nearly 280 billion yuan [4][5]. - Commodity funds, led by gold ETFs, experienced the highest growth, with an increase of over 800 billion yuan, marking a nearly 50% rise [6]. Fund Type Breakdown - The breakdown of fund sizes as of Q2 2025 is as follows: - Stock funds: 47,439.87 billion yuan, up 2,711.47 billion yuan (6.06%) - Bond funds: 107,668.09 billion yuan, up 8,653.20 billion yuan (8.74%) - Money market funds: 139,349.34 billion yuan, up 9,505.39 billion yuan (7.32%) - Commodity funds: 2,683.10 billion yuan, up 867.66 billion yuan (47.79%) [5]. Fund Management Companies - The top three fund management companies by non-monetary fund size growth in Q2 2025 were: - E Fund: 15,231.31 billion yuan, growth of over 1,000 billion yuan - Huaxia Fund: 13,263.34 billion yuan, growth of 1,216 billion yuan - GF Fund: 8,945.95 billion yuan, growth of 592 billion yuan [8][13]. Active vs Passive Funds - Despite the overall growth in equity funds, active equity funds faced a decline, with a net outflow of over 150 billion yuan, while passive index funds saw substantial inflows [21][22]. - The top three active equity fund managers were E Fund, Huaxia Fund, and Huatai-PB Fund, with respective sizes of 10,153.09 billion yuan, 9,547.32 billion yuan, and 5,671.68 billion yuan [15][20]. Market Trends - The market showed a preference for passive investment products, leading to a significant increase in the size of passive index funds, while active equity funds struggled to attract new investments [21][22]. - The structural changes in the market have resulted in a competitive landscape where fund companies focusing on passive strategies are gaining market share, while those emphasizing active management are experiencing declines [22].