Core Viewpoint - The announcement by Ping An Fund to cease operations of its mobile app reflects a broader trend in the public fund industry, where several small and medium-sized institutions are shutting down their independent mobile applications due to cost pressures and declining user engagement [1][3][7]. Group 1: Industry Trends - Ping An Fund will officially stop its app operations on August 31, 2025, following other public fund companies like Guoshou Anbao Fund and Qianhai Kaiyuan Fund, marking a significant shift in the industry [3][5]. - Since 2019, there has been an accelerated trend of public funds shutting down their mobile applications, with at least six companies doing so in 2024 alone, indicating a clear exit wave in the industry [3][5]. - The closure of the app is part of a strategic retreat as the industry faces challenges from high operational costs and low user engagement, particularly among smaller fund companies [5][7]. Group 2: Financial Performance - As of the end of Q2 2025, Ping An Fund managed assets totaling 660.225 billion yuan, ranking 24th among 162 fund companies, but its business structure is heavily skewed towards money market funds, which account for 61.52% of its total assets [3][5]. - The fund's largest money market product, Ping An Daily Increase A, has a scale exceeding 200 billion yuan, while only five out of 109 actively managed equity funds have scales over 1 billion yuan [3][5]. Group 3: Operational Challenges - The annual cost of maintaining a fund app is estimated to be between 2 to 3 million yuan, covering all aspects from regulatory approval to content operation, which is not justified by the low user engagement and funds generated [5][6]. - The user activity levels of smaller fund apps are significantly lower compared to leading fund apps, which further exacerbates the financial viability of maintaining such platforms [5][6]. Group 4: Strategic Shifts - The decision to shut down the app signifies a strategic restructuring in the public fund industry, moving from a heavy asset model to a more lightweight operational approach as companies refocus their resources [7]. - The dominance of third-party platforms in traffic acquisition has led fund companies to reassess their value propositions, shifting from self-built channels to more pragmatic resource allocation [7].

Core Viewpoint - The yield of money market funds is declining significantly, with major funds experiencing a drop of 30-50 basis points compared to the previous year, indicating a shift in the investment landscape as residents seek higher returns amid low interest rates [1][2][7]. Group 1: Current Yield Trends - As of June 6, 2023, the 7-day annualized yield of Yu'ebao reached a historical low of 1.18%, down from 1.56% a year ago [1][5]. - The top 15 money market funds show a general decline in yields, with most funds experiencing a decrease of 30-50 basis points compared to the previous year [2][5]. Group 2: Market Dynamics and Asset Allocation - The report from Everbright Wealth indicates that the proportion of financial assets in Chinese residents' portfolios has been increasing, reaching 54.6% in 2021 and projected to exceed 100% in 2024, marking a significant shift from non-financial assets [7][9]. - There is a noted trend of residents reallocating deposits towards higher-yielding investments such as stocks and wealth management products, as evidenced by a decrease in RMB deposits in April 2023 [9][11]. Group 3: Future Outlook - The money market fund sector is expected to face challenges as market interest rates decline further, potentially leading to a slowdown in the growth of fund sizes [13]. - The shift towards diversified asset allocation is becoming essential as reliance on deposit interest diminishes, prompting a need for investors to embrace volatility and risk [13][22].