Core Viewpoint - The total scale of public funds in China has reached 37.71 trillion yuan by the end of December 2025, marking a historical high for nine consecutive months, with a year-on-year increase of 4.89 trillion yuan, or 14.9% [4][8]. Fund Scale Growth - By the end of December 2025, the total scale of public funds in China increased by approximately 695.75 billion yuan from the previous month [4]. - The scale of public funds has grown from 33.12 trillion yuan in April 2025 to 37.71 trillion yuan by December 2025 [4]. - The growth structure shows that all types of funds achieved positive growth in 2025, with bond funds increasing by 60% and equity funds by 36% [4]. Fund Types and Performance - As of December 2025, the largest fund types by scale are: - Money market funds: 15.03 trillion yuan - Bond funds: 10.94 trillion yuan - Equity funds: 6.05 trillion yuan - Mixed funds: 3.68 trillion yuan - Fund of funds (FOF): 244.39 billion yuan - Other funds: 177 billion yuan [4]. - In December 2025, bond funds led the growth with an increase of over 412 billion yuan, while equity funds also saw a significant increase of over 250 billion yuan [5]. Structural Changes and Trends - The year 2025 saw a notable structural change in fund growth, with bond funds and equity funds showing strong performance, while money market funds experienced a slight decline of about 153.6 billion yuan due to lower yields [6]. - The demand for diversified asset allocation is increasing, with QDII funds growing by 60.56%, bond funds by 59.79%, and equity funds by 35.93% in 2025 [6]. - The trend indicates a recovery in equity funds, driven by the rapid development of ETFs, with mixed funds reversing a trend of continuous contraction since 2022 [6]. Future Outlook - The public fund industry is expected to continue its growth, potentially reaching 40 trillion yuan by 2026, with an estimated incremental capital of around 877.27 billion yuan [8]. - The focus for 2026 will likely be on equity funds, fixed-income plus funds, QDII, commodity funds, and FOFs, as investors seek stable returns in a low-interest-rate environment [8]. - Investment opportunities in 2026 are anticipated to revolve around technology sectors, overseas investments, and high-dividend core assets [8].

January 23, 2026 09:03 AM GMT Investor Presentation | Asia Pacific M Foundation What's Next After the New Year Rally? Morgan Stanley Asia Limited M Deposit Migration Underway Onshore equity mutual funds AUM rose notably in December ~ Rmb30trn term deposits will approach maturity in 1Q26 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Onshore Mutu ...