The A-share market's upward momentum has brought positive developments to the new fund issuance market as well.
On the first trading day after the National Day and Mid-Autumn Festival holidays, E Fund's Hong Kong Stock Connect Technology Fund launched its initial offering with a fundraising cap of 20 billion yuan. The fund has just announced an early closure of fundraising and implemented proportional allocation on the final day. This means the product attracted over 20 billion yuan in just 2 trading days.
Industry professionals note that as the equity market gradually recovers, actively managed equity products have regained investor attention, contributing to the fund's impressive fundraising performance. Additionally, proactively limiting the initial offering size better protects investor interests.
In recent periods, new funds have frequently closed early, with 48 funds announcing early closure in September alone, many of which were equity products. Multiple industry professionals believe that as market conditions continue to improve, equity fund issuance is expected to maintain its recovery momentum and continuously bring incremental capital to the market.
**Another Early Closure**
E Fund's Hong Kong Stock Connect Technology Hybrid Fund launched on October 9th and announced early closure on October 10th.
According to the announcement, the fund's original fundraising deadline was October 21st. Following relevant regulations, E Fund decided to advance the fundraising deadline to October 10th, meaning no further subscription applications will be accepted from October 11th onward.
Simultaneously, E Fund's Hong Kong Stock Connect Technology Hybrid Fund issued a proportional allocation announcement. The announcement revealed that as of October 10th, the fund's cumulative valid subscription applications (excluding interest during the fundraising period) had exceeded the 20 billion yuan fundraising cap. E Fund will apply the "final day proportional confirmation" principle to partially confirm valid subscription applications received on October 10th.
The E Fund Hong Kong Stock Connect Technology Fund is an actively managed equity fund primarily investing in Hong Kong Stock Connect technology stocks. According to the fund contract, equity assets comprise 60%-95% of fund assets, with at least 80% of non-cash fund assets invested in Hong Kong Stock Connect stocks and at least 80% invested in technology-themed stocks.
The designated fund manager is Li Jianfeng, who currently serves as General Manager of E Fund's International Equity Investment Department. Li has cultivated expertise in overseas equity markets for 20 years with over 17 years of global investment experience, making him one of the industry's few fund managers with extensive overseas investment and research experience. His investment approach combines "top-down" and "bottom-up" strategies, emphasizing the purchase of quality investment targets at reasonable valuations for long-term holding, focusing on balanced portfolio allocation with strong risk management capabilities.
"Recent strong performance in actively managed equity product fundraising stems partly from equity market recovery, with such products gaining investor attention, especially those managed by 'proven' fund managers. Additionally, fund custodian banks' sales capabilities play an important role, as channels with strong customer bases achieve better issuance results," noted an industry professional.
**Equity Fund Issuance Recovery Expected to Bring More Incremental Capital to Markets**
As A-share markets continue climbing, overall equity fund issuance conditions are improving.
Wind data shows that as of October 10th, 1,151 new funds have been established this year, raising a combined 896.497 billion yuan. Among these, 656 equity funds and 204 hybrid funds were established, raising 337.476 billion yuan and 107.184 billion yuan respectively. These two categories combined account for 49.6%, representing nearly half of all fundraising.
Since September, equity new funds have become the primary "force" in issuance. Equity funds collectively raised 65.844 billion yuan, accounting for 39.35% with nearly 40% month-over-month growth. Hybrid funds raised 30.292 billion yuan, accounting for 18.10% with over 110% month-over-month growth.
Notably, blockbuster equity products have emerged frequently this year, such as Orient Securities Yingfeng Steady Allocation 6-Month Holding Class A and Fuguo Yinghe Premium Selection 3-Month Holding, both raising over 60 billion yuan. China Merchants Balanced Selection Class A achieved single-day sellout with proportional allocation, establishing a scale of 49.55 billion yuan. CSI Science and Technology Innovation Board Composite ETF feeder funds from China Asset Management and E Fund also performed well, exceeding 40 billion yuan.
Furthermore, 48 funds announced early closure in September, with many being equity products. Industry professionals indicate that the fund issuance market has demonstrated an overall positive trend recently. "As profit-making effects gradually emerge, more capital is expected to enter the market, and equity fund issuance will continue performing well, bringing more incremental capital to A-shares," stated an industry professional.