- The report tracks the weekly performance of quantitative public funds, showing that the average excess return of CSI 300 enhanced index funds was -0.02%, with 47.06% of funds achieving positive excess returns during the week of July 21-25, 2025[1] - Monthly performance data indicates that as of July 25, 2025, the CSI 300 enhanced index funds had an average excess return of -0.38%, with only 14.93% of funds achieving positive excess returns[2] - Year-to-date (YTD) performance shows that CSI 300 enhanced index funds achieved an average excess return of 0.66%, with 72.13% of funds achieving positive excess returns as of July 25, 2025[3]

Core Viewpoint - The rapid growth of index-enhanced funds in China is driven by policy support, increased investor demand, and the unique advantages of these funds, with a significant rise in the number of new products and total fundraising amounts in 2023 [1][3]. Group 1: Growth of Index-Enhanced Funds - As of June 15, 2023, 70 new index-enhanced funds were established, marking a year-on-year increase of approximately 438%, with total fundraising exceeding 35.8 billion yuan [1][2]. - The number of index-enhanced funds established in 2023 is the highest in recent years, surpassing previous years' totals [2]. Group 2: Factors Driving Growth - Multiple factors contribute to the rapid development of index-enhanced funds, including policy guidance, regulatory mechanisms, and a structural shift in investor demand towards transparent and excess return products [3]. - Index-enhanced funds are positioned between passive index funds and traditional active funds, with a focus on achieving stable excess returns [3]. Group 3: Market Composition and Trends - There are currently 366 index-enhanced funds in the market, with over 60% focusing on broad-based indices such as the CSI 500 and CSI A500 [3][4]. - The CSI A500 index has seen a significant increase in the number of index-enhanced funds, with 38 out of the 70 new funds established in 2023 being CSI A500 index-enhanced funds [3]. Group 4: Investment Strategies and Future Outlook - Fund managers are increasingly adopting quantitative strategies to achieve stable excess returns, which is seen as a key path for both large and small public fund institutions [5]. - The future of index-enhanced funds is expected to become a crucial business segment for public fund institutions, potentially becoming a decisive factor in their core competitiveness [5][6].