A recent research report indicates that in January 2026, the net value of A-share equity strategies showed significant improvement, though quantitative products experienced a divergence in alpha returns. Private fund products collectively achieved a return of 3.86%, with stock strategy products averaging a gain of 5.18%. Against a backdrop of stricter regulations, the number of fund managers continued to decline, decreasing by approximately 31 in January. The private fund market expanded rapidly, with total assets under management rising to 7.47 trillion yuan, largely driven by growth in stock strategy products. The number of leading managers with assets exceeding 5 billion yuan remained stable at 245, of which around 91 were quantitative managers. The private fund confidence index continued to climb but fund managers adopted a relatively cautious approach to position management.
In terms of performance, buoyant market sentiment favored equity strategies, while alpha returns of index-enhanced products diverged. In January 2026, A-share assets generally posted gains, with cyclical and technology sectors performing strongly and sector rotation accelerating. Most broad-market indices saw net value increases over the month. Private fund products returned 3.86% overall, with stock strategy products rising 5.18%, delivering strong monthly performance. High-beta strategies such as macro, multi-strategy, and FoF/MoM strategies recorded substantial gains, while bond strategies, market-neutral strategies, and arbitrage strategies lagged. Since the beginning of 2026, alpha returns of quantitative index-enhanced strategies have diverged, with steady improvement seen in CSI 300 and CSI 1000 enhanced products, while CSI 500 enhanced strategies experienced a noticeable decline.
On the product issuance front, the number of fund managers continued to shrink, with a net reduction of over 30. Data show that 625 new products were issued in January 2026, with quantitative strategies accounting for about 38%, down 6 percentage points from the previous month. Three new private securities investment managers were registered in October, while 34 managers were deregistered, resulting in a net decrease that was smaller than in December 2025. Most deregistered managers voluntarily exited, with about one-third removed by the association.
Total market scale increased to 7.47 trillion yuan, with the share of quantitative products rising. The scale of private securities investments continued to expand, rising rapidly from 7.18 trillion yuan at the beginning of January 2026 to 7.47 trillion yuan. Discretionary equity strategies and quantitative equity strategies contributed net increases of 96.8 billion yuan and 85.5 billion yuan, respectively. Currently, there are 245 managers with assets under management exceeding 5 billion yuan, including approximately 91 quantitative managers. Among managers overseeing more than 10 billion yuan, 124 are private securities investment managers, 59 of which employ quantitative strategies.
Regarding manager sentiment, the private fund confidence index continued to rise, but position management remained relatively cautious. Investor enthusiasm for the market steadily increased, with the confidence index reaching 125.5 in early February 2026, placing it at the 80th percentile since 2020. Compared to early January, the proportion of managers expressing quarterly optimism or strong optimism rose, though the share of investors planning to increase or significantly increase positions declined. Currently, A-shares are exhibiting strong but volatile trends with rapid sector rotation. As the foundation for domestic economic recovery continues to strengthen, investors are advised to monitor market movements around the Two Sessions, particularly easing liquidity conditions and potential risks.
Key risk factors include inaccurate performance statistics due to missing or incomplete net asset values or misclassification; overestimation of returns if performance fees are not deducted; potential double-counting of performance or scale if master-feeder fund structures are not distinguished; possible discrepancies between estimated data and actual figures; and deviations between projected industry trends or strategy outlooks and actual developments.