Core Viewpoint - The departure of Zhang Hongtao, known as the "ETF King" of Huaxia Fund, marks a significant shift for the company, which has lost its leadership in managing public funds and faces challenges in both passive and active investment sectors [3][7][14]. Group 1: Departure of Key Personnel - Zhang Hongtao resigned as the manager of Huaxia CSI Dividend Quality ETF and its linked fund, leaving the company without any managed public products [3][5]. - His career at Huaxia Fund spanned over 15 years, during which he managed multiple public products, including large ETFs, and achieved a peak asset management scale of 456.14 billion [8][9]. - The exit of Zhang highlights a talent shortage at Huaxia Fund, raising concerns about the stability of its investment research team [11][12]. Group 2: Business Challenges - Huaxia Fund's revenue for the year reached 8.03 billion, a year-on-year increase of 9.61%, but this growth is primarily driven by passive investment expansion [14]. - The ETF market has become highly competitive, with Huaxia Fund facing challenges from other leading firms like E Fund and Huatai-PB, which are rapidly increasing their ETF asset scales [15][16]. - In 2024, Huaxia Fund's ETF asset scale was approximately 6587.82 billion, while E Fund's was over 6025.55 billion, indicating a narrowing gap in market leadership [16]. Group 3: Performance Issues - Huaxia Fund's active equity products have underperformed, with an average return of -18.72% in 2024, significantly lower than the average of -8.56% for similar funds [18]. - The management scale of Huaxia Fund's active equity products has shrunk by over 130 billion from its peak, indicating a loss of investor confidence [18][20]. - The company has faced scrutiny over compliance issues, including misleading marketing claims, which have further impacted its reputation and operational stability [22]. Group 4: Internal Management Concerns - Recent scandals, including the "mouse warehouse" incident, have raised questions about Huaxia Fund's internal controls and monitoring of trading behaviors [20][22]. - The company has been penalized for compliance failures, leading to a suspension of specific asset management services, which has adversely affected its active equity product scale [20][22]. - Huaxia Fund's ability to handle investor complaints and compensation mechanisms remains untested, particularly in light of significant fund losses [22].