Core Viewpoint - Huazhong Fund, one of the first public funds, is facing potential closure due to the merger of Guotai Junan and Haitong Securities, with the likelihood of Huazhong Fund being eliminated due to its lower profitability and management issues compared to Haifutong Fund [1][9]. Group 1: Fund Performance and Management Changes - Huazhong Fund has a management scale of 693.1 billion, significantly higher than Haifutong's 172.2 billion, but its profitability is declining, with 2024 revenue at 3.11 billion and net profit at 910 million, down 9.56% and 2.66% year-on-year respectively [1]. - Recent departures of key personnel, including "fixed income queen" Sun Lina and equity fund veteran Li Xin, indicate internal expectations of challenges ahead [1]. - The fund's equity products have seen a collapse in performance, particularly after the exposure of former fund manager Zhang Liang's misconduct, leading to significant losses in managed funds [2][6]. Group 2: Equity Fund Performance - The performance of Huazhong Fund's equity products has been poor, with many funds managed by former star managers experiencing substantial losses, including a 20% decline in the last two years for funds managed by Wang Chun [2][4]. - The fund's overall performance is characterized by a high percentage of negative returns, with 16 funds down over 30% and 56 funds down over 20% in the last three years [6]. Group 3: Future Outlook and Industry Context - The merger of Guotai Junan and Haitong Securities poses a significant threat to Huazhong Fund, as Haitong's possession of a rare social security fund license increases its chances of survival [1][9]. - Despite the challenges, Huazhong Fund's scale has been maintained due to the growth of index and fixed-income products, with its fixed-income funds achieving a 20.50% return over the past five years [8]. - The future of Huazhong Fund appears uncertain, with the potential for its historical legacy to be overshadowed by the merger and the departure of key talent [9][10].