Core Viewpoint - A significant number of public funds, totaling 40, have terminated their sales agreements with Minshang Fund, indicating a strategic shift in the fund's operations and a potential industry-wide restructuring [2][4][10]. Group 1: Termination of Agreements - On June 12, 40 public fund companies announced the termination of their sales agreements with Minshang Fund, which represents half of the total fund companies that previously collaborated with Minshang [4][10]. - Minshang Fund has stated that the terminations are a result of their proactive decision to adjust their business strategy, focusing on private fund sales rather than public fund sales [7][8]. - The number of fund companies collaborating with Minshang Fund has decreased from 72 to 36, and the number of funds sold has dropped from 2726 to 1629 within a short period [4][10]. Group 2: Business Focus and Strategy - Minshang Fund, established in 2016, primarily focuses on asset management and wealth management, serving small to medium financial institutions and affluent individuals [5]. - The company has paused its "Zhenhao Investment" platform for over five years, indicating a shift in its operational focus [6]. - Industry insiders suggest that the decision to terminate public fund sales may be a strategic move to concentrate resources on more profitable private fund sales [7][10]. Group 3: Industry Context and Trends - The fund distribution industry is undergoing significant changes, with many sales institutions ending partnerships with fund companies due to cost-effectiveness, compliance risks, and a shift towards larger, more capable sales organizations [10][11]. - The recent regulatory framework emphasizes long-term investor returns over short-term sales, which may lead to a consolidation of the industry, favoring institutions with strong compliance and service capabilities [11].