Latest data from the fund industry association shows that, as of the end of January, there were 165 public fund management institutions operating domestically in China, along with 15 asset management institutions qualified to manage public funds. The combined net asset value of public funds managed by these institutions reached 37.77 trillion yuan, reflecting a slight increase of 0.14% compared to the previous month. This marks the tenth consecutive month of growth for public fund assets, setting a new historical record.
However, the total number of public fund shares saw a slight decline. By the end of January, the overall share count of public funds stood at 31.91 trillion units, down 0.39% month-on-month. Despite the minor contraction in shares, the overall scale of public funds increased to 37.77 trillion yuan, registering a 0.14% growth, as net asset value appreciation drove positive expansion.
It is notable that since April of last year, the total scale of China’s public funds has continuously reached new historical highs for ten months in a row. At the same time, the number of public fund products continues to expand. By the end of January, the total number of products in the market reached 13,725, with 103 new products added during the month.
In terms of changes in scale across different types of public funds, hybrid funds, money market funds, and other funds were the main drivers of growth, with each category registering increases in the hundreds of billions of yuan. On a monthly comparison, fund of funds (FOF) experienced the largest surge in shares, rising by 15.05%, ranking first among all fund types.
FOF products recorded the highest growth in both shares and scale in January. Data indicates that by the end of the month, FOF shares and scale reached 252.276 billion units and 281.178 billion yuan, respectively, up 12.68% and 15.05% compared to the previous month.
Additionally, hybrid funds ended January with shares totaling 2.6 trillion units, an increase of 1.88% month-on-month. Boosted by net value growth, the scale of hybrid funds reached 4 trillion yuan by month-end, surging 8.98% from the prior month.
In contrast, equity funds experienced declines in both shares and scale during January. Specifically, the share count of equity funds fell to 3.92 trillion units by the end of the month, down 0.84% from December, while their scale dropped to 5.71 trillion yuan, a decrease of 5.68%.
Following the Lunar New Year holiday, the A-share market showed strength, with the Shanghai Composite Index gaining 2% in a single week, approaching the 4,200-point level.
Looking ahead, Wang Li, a senior macro strategy researcher at Great Wall Fund, stated that the A-share market benefits from multiple positive factors. Specifically, declining risk-free returns and ongoing capital market reforms are supporting market valuations through lower discount rates, providing a favorable liquidity environment. Domestic demand policies are being fully implemented, with both consumption and investment sectors experiencing policy and fundamental synergies. Expectations for strong export performance are clear, and coupled with breakthroughs in new technology industries and accelerated globalization, these factors are collectively driving a substantial stabilization and upward revision of economic expectations for China. In terms of investment strategy, emerging technology remains the main theme, while value stocks are also expected to see a resurgence. The focus of China’s economic work is shifting toward domestic demand as the primary driver. Expectations for domestic demand recovery, rising prices, and stabilization in the property sector are likely to lead to upward revisions in economic forecasts. Currently, expectations and trading in domestic demand sectors are clearing, suggesting value stocks may be approaching an inflection point.
Yang Delong, chief economist at Qianhai开源, analyzed that historically, the A-share market has exhibited seasonal strength in the spring, and the post-holiday period is expected to initiate a new round of upward movement. At present, not only are technology stocks performing well after the holiday, but more sectors are showing clear rotation signs, indicating abundant opportunities and potentially enhanced profitability in the Year of the Horse market.