The mutual fund industry is abuzz with major news today: Hua An Fund is expected to see a change in its general manager position. The ongoing merger negotiations between Hua An Fund and Hai Fu Tong Fund have been intense for over a year. Recently, reports suggested that Hua An Fund would lead the merger, but this was quickly denied. Today, further updates indicate that the integration process between Hua An Fund and Hai Fu Tong Fund is still underway, with Hua An Fund continuing to take the lead. However, no official confirmation has been provided.

Focusing on personnel changes at Hua An Fund offers insight into the broader situation. Changes in personnel often reflect underlying strategic shifts.

- 1 - Hua An Fund’s General Manager Position May Change Fang Yitian, Chairman of Wan Jia Fund, is set to step down and is expected to become the next General Manager of Hua An Fund. This news has spread rapidly across Shanghai and the national mutual fund sector. The current General Manager of Hua An Fund, Zhang Xiaoling, has been a key figure in the company’s daily operations and the development of its investment research system. With experience at the Federal Reserve, Morgan Stanley, and regulatory bodies, Zhang brought both regulatory insight and market-oriented management expertise. He took over as General Manager in October 2020 and, over his five-year tenure, led the evolution of the investment research framework and product offerings. Zhang is now approaching retirement, and his departure timeline appears to align with the expected finalization of the merger plan, indicating he will not be involved in post-merger management.

Over the past year, Hua An Fund’s senior management has undergone significant restructuring beyond the high-stakes negotiations with Hai Fu Tong Fund. Last August, Xu Yong, former General Manager of China Merchants Fund, was appointed Chairman of Hua An Fund. From the outset, Xu was seen as a key appointee by shareholders to steer the asset management integration. With a strong background in pension finance from his time at Chang Jiang Pension, his appointment may signal Hua An Fund’s need for expertise in pension business as it merges with Hai Fu Tong.

The rumored incoming General Manager, Fang Yitian, brings a robust profile despite being in his forties. His career spans regulatory agencies, securities, and fund management, including roles at Shanghai Fiscal Securities, the China Securities Regulatory Commission system, and the Shanghai Stock Exchange Information Network. Fang has been Chairman of Wan Jia Fund for over a decade, joining in October 2014 and assuming the chairmanship in July 2015. Under his leadership, Wan Jia Fund’s assets under management grew from over 20 billion yuan to nearly 600 billion yuan, lifting its industry ranking to 24th. In comparison, Hua An Fund reported assets exceeding 820 billion yuan by the end of the first quarter, ranking 15th. Notably, Wan Jia Fund has performed well in equity investments, with data from Guotai Haitong showing its equity funds achieved an average return of 197.7% over the past decade, ranking tenth among 98 fund companies. Fang’s experience is expected to strengthen Hua An Fund’s position in merger negotiations.

- 2 - Adjustments Among Hua An Fund’s Deputy General Managers Hua An Fund is also realigning its deputy general managers. Currently, there are three deputies: Weng Qisen, Yao Guoping, and Fan Yiran. Weng Qisen, who heads investment research and serves as Chief Investment Officer (CIO), is a central figure in the investment research system with over 30 years of experience in finance, securities, and fund management, including earlier roles in Taiwan’s financial sector. However, Weng is also nearing retirement age. Reports indicate that Yan Tao, former Assistant General Manager of Chang Jiang Pension, has joined Hua An Fund and is set to become a Deputy General Manager. Yan, a former colleague of Chairman Xu Yong from their time at Chang Jiang Pension, is not expected to succeed Weng. At 50, Yan has over 20 years of experience in banking and insurance, covering business development, management, strategy, human resources, and pension finance with alternative investment operations. He is also a key leader in the merger with Hai Fu Tong Fund.

Previously, Hua An Fund’s market division was managed by two deputies: Yao Guoping oversaw institutional business, while Gu Yuanyuan handled retail business and also managed product, marketing, and e-commerce departments. After Gu Yuanyuan’s departure last September, her responsibilities were temporarily absorbed by the General Manager and Yao Guoping. It has been reported that Yan Tao may take over institutional business upon joining, but the division of responsibilities between Yan and Yao regarding institutional and retail operations remains to be seen. Deputy General Manager Fan Yiran, who heads the Beijing branch, previously served as Brand Director at Guotai Junan Securities and has extensive media experience from her time at CCTV. The future allocation of duties among the deputies will be closely watched.

- 3 - Frequent Changes in Hua An Fund’s Investment Research Team At the end of March, Lu Jingchang, Director of FOF at Hua An Fund, departed. With 14 years of FOF investment management experience, Lu was a core member of the FOF team. Prior to his departure, he managed 6.8 billion yuan in FOF assets, out of Hua An Fund’s total FOF assets of 8.1 billion yuan. Reports suggest he left with team members. In 2025, Sun Lina, known as the "fixed income star" managing nearly 300 billion yuan, left, followed by veteran equity fund manager Li Xin, who resigned from all positions. In January of this year, prominent manager Jiang Qiu, known for the "double ten" achievement, resigned abruptly without a transition period, indicating a firm departure. Recently, index fund managers Liu Xuanzi and Gu Xin stepped down from some funds due to "internal adjustments." Last year, several others, including Wei Yuanyuan, Zheng Ruxi, Zhou Shuzhan, Ma Xiaoxuan, and Lin Tangyu, also left their fund positions. Another notable figure is Xu Zhiyan, manager of the largest gold ETF. Recently, additional managers were appointed to several funds under his management, possibly for mentoring or role adjustments. Xu continues to manage the Hua An Gold ETF, suggesting potential positive developments.

Senior management instability often affects team morale, which is understandable amid ongoing merger speculation.

- 4 - Two Key Updates Finally, a brief note on the merger. An official statement from Guotai Haitong Vice President and Board Secretary Nie Xiaogang at a March 31 earnings conference clarified that integration plans for Hua An Fund and Hai Fu Tong Fund are actively being advanced, with various feasible options evaluated for complementary advantages. Plans conducive to the future development of the public fund business will continue to be formulated. Clearly, the merger outcome remains uncertain. Whether it will be a "small acquiring large" or "large acquiring small" scenario is unclear, but personnel changes suggest Hua An Fund is taking the lead.

Additionally, two potential merger approaches have been highlighted: one involves Ministry of Human Resources and Social Security approval to designate Hua An Fund as the manager for social security and annuity funds, with Hai Fu Tong funds transferring management; the other seeks China Securities Regulatory Commission approval to batch-change fund management names without individual shareholder meetings. Alternatively, as speculated, Hua An Fund might avoid direct merger by making Guojun Asset Management the actual controller.

In other news, Hua An Fund faced severe regulatory penalties, including a three-month suspension of new fixed-income product registrations and warning sanctions against four senior executives, amid what has been described as the most intense wave of penalties ever.