Core Viewpoint - The public FOF (Fund of Funds) market has shown significant growth in 2025, with a notable increase in demand for stable FOFs and a shift towards diversified asset allocation strategies [1][3]. Group 1: Market Growth and Trends - As of June 30, 2025, there are 518 FOFs in the market, with a total scale of approximately 165.7 billion yuan, reflecting a quarter-on-quarter increase of about 14.6 billion yuan, or 9.68% [1]. - The demand for stable FOFs has increased, with the proportion of stable debt-mixed FOFs reaching 31% of the total FOF market [3][4]. - In Q2 2025, 15 new public FOFs were launched, with a total issuance scale of approximately 18.6 billion yuan, marking a continued upward trend [3]. Group 2: Fund Performance and Preferences - The bond-type FOFs have seen significant net subscriptions, with the top-performing bond FOF, Bosera Zhenxuan Chuhui, increasing by 6.847 billion units [5][6]. - The one-year return rates for the top three FOFs were 4.95%, 4.50%, and 5.19%, indicating stable performance [7]. - Despite high returns from target date and equity FOFs, there was no significant net subscription for these products, highlighting a preference for stable options [8]. Group 3: Asset Allocation Strategies - Public FOFs have increased their allocation to passive bond funds while reducing exposure to pure index equity funds, with the proportion of pure bond fund holdings rising from 30.75% to 36.80% [12][13]. - The allocation to passive equity funds has decreased, reflecting a strategic shift in asset allocation [13]. Group 4: Management and Concentration - The number of public institutions managing FOF products has increased to 85, with the top ten managers holding 60.8% of the market share, indicating a slight decrease in market concentration [10][11]. - Notable fund managers with FOFs exceeding 10 billion yuan include Xingzheng Global Fund, E Fund, and Zhongou Fund [11]. Group 5: Fund Selection and Holdings - The most frequently increased funds by FOFs in Q2 2025 were primarily bond funds, with significant increases in passive bond and short-term pure bond funds [16]. - Among active equity funds, the top holdings by FOFs were Dachen Gaoxin Stock C and E Fund Kairong Mixed, both showing high external holding frequencies [16][17].

Core Viewpoint - The public fund industry in China experienced significant growth in both fixed income and equity fund sizes in Q2 2025, driven by market fluctuations and investor preferences for passive investment products [2][4][6]. Fund Size Growth - As of the end of Q2 2025, the total public fund management size reached 34.05 trillion yuan, an increase of 2.24 trillion yuan or 7% from the previous quarter [4]. - Fixed income funds saw a growth of over 860 billion yuan, while equity funds, particularly pure index funds, increased by nearly 280 billion yuan [4][5]. - Commodity funds, led by gold ETFs, experienced the highest growth, with an increase of over 800 billion yuan, marking a nearly 50% rise [6]. Fund Type Breakdown - The breakdown of fund sizes as of Q2 2025 is as follows: - Stock funds: 47,439.87 billion yuan, up 2,711.47 billion yuan (6.06%) - Bond funds: 107,668.09 billion yuan, up 8,653.20 billion yuan (8.74%) - Money market funds: 139,349.34 billion yuan, up 9,505.39 billion yuan (7.32%) - Commodity funds: 2,683.10 billion yuan, up 867.66 billion yuan (47.79%) [5]. Fund Management Companies - The top three fund management companies by non-monetary fund size growth in Q2 2025 were: - E Fund: 15,231.31 billion yuan, growth of over 1,000 billion yuan - Huaxia Fund: 13,263.34 billion yuan, growth of 1,216 billion yuan - GF Fund: 8,945.95 billion yuan, growth of 592 billion yuan [8][13]. Active vs Passive Funds - Despite the overall growth in equity funds, active equity funds faced a decline, with a net outflow of over 150 billion yuan, while passive index funds saw substantial inflows [21][22]. - The top three active equity fund managers were E Fund, Huaxia Fund, and Huatai-PB Fund, with respective sizes of 10,153.09 billion yuan, 9,547.32 billion yuan, and 5,671.68 billion yuan [15][20]. Market Trends - The market showed a preference for passive investment products, leading to a significant increase in the size of passive index funds, while active equity funds struggled to attract new investments [21][22]. - The structural changes in the market have resulted in a competitive landscape where fund companies focusing on passive strategies are gaining market share, while those emphasizing active management are experiencing declines [22].

Market Performance - In the first half of 2025, major A-share indices saw an overall increase, with the Shanghai Composite Index rising by 2.76% and the North Star 50 Index surging by 39.45%, reaching a historical high [1] - The market experienced structural opportunities, with themes such as DeepSeek, humanoid robots, and innovative drugs gaining significant attention from investors [1] Fund Issuance Trends - The public fund industry saw a total of 663 new funds established in the first half of 2025, a year-on-year increase of 6.25%, although the total issuance volume decreased by 20.18% to 5,267.68 million units [1] - Stock funds showed a remarkable recovery, with the number of new stock funds increasing by 67.5% and issuance volume rising by 180.2% compared to the previous year [3] - Index products, particularly ETFs and enhanced index funds, contributed significantly to the growth in stock fund issuance [3][4] Fund Types and Performance - In the first half of 2025, 483 new pure index stock funds were established, with a total issuance of 1,445.84 million units, making them the top category in terms of new fund issuance [2] - Despite the strong performance of stock funds, bond funds still led in total issuance volume, with 2,469.98 million units issued [2] - The issuance of mixed funds decreased by 22.7% in number but increased by 17.5% in volume, indicating a mixed performance across fund types [3] Innovative Products and Market Dynamics - The issuance of innovative public fund products, such as FOFs and REITs, showed significant growth, with FOFs reaching an issuance scale of 327.52 million units, over five times that of the previous year [6] - The market is witnessing a shift towards active equity funds, driven by improved performance and investor interest, particularly in technology themes [8] - Fund companies are diversifying their product offerings, focusing on broad-based ETFs, technology themes, and dividend themes to cater to varying investor needs [9][10]

Core Viewpoint - FOFs are increasingly allocating to gold ETFs and index bond funds due to global monetary easing, de-dollarization trends, and rising risk aversion, with gold ETFs becoming a focal point for investment in 2024 [2][4]. Group 1: Gold ETF Investment - In 2024, gold ETFs significantly outperformed other asset classes, with the London spot gold price rising 27.23% to $2,624 per ounce, and the AU9999 gold tracked by the Huazhong Gold ETF increasing 28.19% to 614 yuan per gram [4]. - The Huazhong Gold ETF managed by Xu Zhiyan had a management scale of 41.6 billion yuan as of March 31, 2024, with a return of 27.45% for 2024 and 18.64% for the first quarter of 2025 [4]. - Factors driving gold's strong performance include the Federal Reserve's interest rate cuts, global central banks' continued gold purchases exceeding 1,000 tons, and increased global policy uncertainty [4][6]. Group 2: Index Bond Fund Trends - The allocation of FOFs to index bond funds has rapidly increased, while the share of traditional pure bond funds has declined. By the end of 2024, the allocation to index bond funds rose by 3.81%, while pure bond funds fell by 8.25% [7][8]. - As of the end of 2024, FOFs held 28.299 billion yuan in pure bond funds, accounting for 23.86% of total holdings, while mixed equity funds accounted for 14.11% [7]. - The shift towards index bond funds is attributed to a preference for passive management, cost control, transparency, and the growing institutionalization of the bond market [8].