Core Insights - The report reveals a significant decline in the total management scale of China's mother funds, dropping to 34,845 billion yuan by mid-2025, a decrease of 23.7% compared to the end of 2024 [1][2][3] - The establishment of new mother funds has sharply decreased, with only 33 new funds launched in the first half of 2025, primarily government-guided funds [1][2][3] - Investment scale from mother funds also saw a decline, totaling 3,338 billion yuan in the first half of 2025, down 7.2% from the same period in 2024 [1][3] Fund Establishment and Scale - As of mid-2025, there are 460 mother funds, with government-guided funds accounting for 338 and market-oriented funds for 112 [2][3] - The total scale of newly established mother funds in the first half of 2025 is 1,970.17 billion yuan, with government-guided funds at 798.04 billion yuan and market-oriented funds at 80 billion yuan, reflecting declines of 66% and 50% respectively compared to the previous year [1][2] Investment Trends - The total investment scale of mother funds in the first half of 2025 is 3,338 billion yuan, a decrease from 3,791 billion yuan in the same period of 2024 [3] - Government-guided fund investments totaled 2,741 billion yuan, down 5.59%, while market-oriented fund investments were 442 billion yuan, down 6.62% [3] S Fund Development - The S fund investment scale reached 335 billion yuan in the first half of 2025, nearly doubling from 171 billion yuan in the same period of 2024, indicating rapid growth in the S fund sector [4][5] - The establishment of S funds is driven by local government initiatives and market demand, with a notable increase in state-owned S funds [4][5] Policy and Regulatory Changes - There has been a significant relaxation in the funding requirements for sub-funds, with many regions increasing the maximum funding ratio to 70% or higher [6] - The average return requirement for government-guided funds has decreased by over 40% in the past six years, with many funds now having a return requirement below 1 [6] Management Fee Adjustments - The management fee structure for equity investment funds has become stricter, with new regulations limiting fees to a maximum of 2% of the actual investment amount [7] - There is a noticeable trend of decreasing management fees, with many funds now charging between 1% and 1.5%, and some as low as 1% [7]

Core Viewpoint - The establishment of mother funds is shifting from quantity expansion to quality improvement, indicating a significant cooling in the mother fund market this year [1][5]. Group 1: Current Market Trends - The number of newly established mother funds has sharply decreased, with only 33 new funds launched in the first half of the year, including 31 government-guided funds and 2 market-oriented funds [1][4]. - The total scale of newly initiated mother funds reached 1970.17 billion, with government-guided funds accounting for 798.04 billion and market-oriented funds for 80 billion, representing declines of 66% and 50% respectively compared to the same period in 2024 [1][4]. Group 2: Management Scale and Performance - As of mid-year, there are 460 mother funds in total, with a total management scale of 34.8 trillion, down 23.7% from the end of 2024 [3]. - Government-guided funds comprise 338 of these, with a total management scale nearing 30 trillion, reflecting a 24% decrease, while market-oriented funds total 482.9 billion, down 22.4% [3]. Group 3: Policy and Future Direction - The government is encouraging a focus on quality and efficiency in fund establishment, with a clear policy shift towards long-term orientation and resource coordination [5][6]. - The recent policy guidance emphasizes the need for mother funds to adopt a more rational approach, moving towards reasonable development and stable operations [5][6].