Active equity funds averaged over 23% returns in the first eight months, with 21 funds delivering "double gains" and the top performer exceeding 175%.

In the first eight months of this year, China's A-share market surged significantly, with publicly traded equity funds experiencing a "strong return" of money-making effects, producing batches of funds with doubled performance.

Specifically, mainstream indices generally posted gains in the first eight months, with the Beijing Stock Exchange 50 Index achieving the best performance with a 51.49% year-to-date increase. The STAR-ChiNext 50, STAR 50, ChiNext Index, and CSI 2000 indices showed strong performance with gains exceeding 30%, while only dividend indices experienced slight declines.

Particularly in August, the market rebounded strongly, with the Shanghai Composite Index breaking through the 3,800-point threshold, reaching a 10-year high. Among these, STAR-related indices performed robustly, with the STAR-ChiNext 50 and STAR 50 indices gaining 32.25% and 28.00% respectively.

Under such market conditions, active equity funds achieved an average net asset value growth rate of 23.83% in the first eight months, with the top-performing fund gaining over 175%.

**Active Equity Funds Average 23.83% Growth in First Eight Months**

Benefiting from stock market rises, equity funds delivered impressive performance results.

Wind data shows that excluding new funds established in 2025, equity funds achieved an average net asset value growth rate of 23.89% in the first eight months (including index, hybrid, and stock funds, excluding FOF and QDII, counting only main codes and funds disclosing performance as of August 29), significantly outperforming mainstream indices like the Shanghai Composite.

Specifically, active equity funds achieved an overall average net asset value growth rate of 23.83% in the first eight months. Regular stock funds with minimum positions of 80% and partial stock hybrid funds with 60% minimum positions better reflect the overall equity investment capabilities of public funds. Data shows that as of August 29, regular stock funds and partial stock hybrid funds achieved average net asset value growth rates of 28.38% and 28.79% respectively year-to-date, showing substantial "recovery" strength.

Benefiting from market recovery, 98.19% of active equity funds posted positive net asset value growth rates in the first eight months, with numerous funds reaching new net asset value highs.

**Top Fund Performance Exceeds 175%, 21 Funds "Double"**

This year, structural opportunities emerged in sectors including the Beijing Stock Exchange, innovative drugs, humanoid robots, AI, semiconductors, and technology innovation, enabling fund managers who captured these opportunities to achieve substantial returns.

In 2025, "doubling funds" among active equity funds made a comeback. Data shows that as of August 29, 603 active equity funds achieved net asset value growth rates exceeding 50% year-to-date, with 21 exceeding 100%, and the top performer surpassing 175%.

Specifically, Yongying Technology Smart Selection A, managed by Ren Jie, led all funds with a net asset value increase of 175.68% in the first eight months. This "relatively new fund," established on October 30, 2024, clearly captured the timing perfectly, seizing opportunities in the 2025 cloud computing market, with net asset value gains of 43.79% in the past month alone.

The fund primarily focuses on global cloud computing industry investment directions. The interim report shows that in the second half of the year, the fund will focus on global frontier model releases, emerging application developments, and the operational status of OpenAI/Anthropic, overseas cloud and chip manufacturers, and domestic related companies such as optical communications (CPO) and printed circuit boards (PCB), actively exploring investment opportunities in the global cloud computing industry.

AVIC Opportunity Navigator A managed by Han Hao and Great Wall Pharmaceutical Industry Selection A managed by Liang Furui closely followed, with net asset value gains of 133.56% and 125.68% respectively in the first eight months. Additionally, CICC Beijing Stock Exchange Selection Two-Year Lock-up A, China Europe Digital Economy A, Bank of China Hong Kong Stock Connect Pharmaceuticals A, GF Growth Navigator One-Year Hold A, Yongying Pharmaceutical Innovation Smart Selection A, Sino-Australian Performance Driven A, and Huian Growth Selection A performed well, all achieving net asset value growth rates exceeding 110% in the first eight months.

Among QDII funds, Harvest Hong Kong Advantage Selection A managed by Zhang Wei performed well, achieving a year-to-date net asset value growth rate of 133.56% as of August 29. The fund heavily weighted innovative pharmaceutical stocks.

If market conditions continue, 2025 could become a "banner year" for active equity fund performance.

However, some active equity funds underperformed, with 5 products experiencing net asset value losses exceeding 5%. The worst performer was Minsheng Royal Preferred Stock Fund with a net asset value growth rate of -9.51%. On July 18, the fund manager of Minsheng Royal Preferred Stock Fund changed, with original manager Cai Xiao departing (tenure from December 28, 2022, to July 18, 2025) and Liu Hao becoming the new fund manager.

**Four Index Funds "Double" in First Eight Months**

In the first eight months of this year, sectors including innovative drugs, rare earth metals, and artificial intelligence rotated through strong performances, driving numerous index funds.

From specific index fund performance, innovative drug-themed index funds became the biggest winners in the first eight months.

This year, the innovative drug sector surged continuously, with the Hong Kong Stock Connect Innovative Drug Index achieving a cumulative annual gain of 108.24%, and index funds tracking innovative drugs also surged. Driven by the innovative drug market, Wanjia CSI Hong Kong Stock Connect Innovative Drug ETF, Harvest CSI Hong Kong Stock Connect Innovative Drug ETF, Invesco Great Wall CSI Hong Kong Stock Connect Innovative Drug ETF, and Yinhua CSI Hong Kong Stock Kong Connect Innovative Drug ETF became year-to-date "doubling funds."

Fuguo Hang Seng Hong Kong Stock Connect Healthcare ETF, China Europe CSI Hong Kong Stock Connect Innovative Drug Index A, and Harvest CSI Hong Kong Stock Connect Innovative Drug ETF Feeder A achieved year-to-date net asset value growth rates ranging from 90% to 98%. Additionally, CSI Hong Kong Stock Connect Healthcare Comprehensive ETF products from E Fund, Penghua, Ping An, Yinhua, and other fund companies also "dominated the rankings."

Besides innovative drug-related ETF products, CSI Rare Earth Industry ETFs from E Fund, Fuguo, and Hwabao WP, and ChiNext AI ETFs from Southern, Hwabao, and Cathay also delivered impressive performance, with net asset value gains ranging from 75% to 85% in the first eight months.

E Fund manager Li Shujian stated that looking ahead, the trend of domestic economic endogenous growth momentum stabilizing and improving is expected to continue, and volatility in overseas economic growth expectations may gradually moderate. Against the backdrop of maintaining reasonable liquidity abundance, policies continuously enhancing capital market stability, and rapid development of emerging industries, A-shares and Hong Kong stocks are expected to provide medium-to-long-term allocation value for global investors. Specifically, multiple industries including innovative drugs, AI, robots, and satellites have developed rapidly, with some areas reaching globally leading levels and significantly enhanced international competitiveness, potentially cultivating a new batch of quality enterprises representing China's high-quality economic development trends.

"The equity market is facing rebalancing of underlying funds, specifically manifested in three levels: The first level is rebalancing between US dollar assets and non-US dollar assets. Since the beginning of this year, multiple signs indicate that considerable funds have flowed from US dollar assets to non-US dollar assets. The second level is rebalancing between stocks and bonds. From recent fund subscription and redemption behaviors, we have observed some preliminary signs that some funds are beginning to switch from bond markets to equity markets. The third level is asset allocation rebalancing after resident deposits mature, which represents a large volume. During this rebalancing process, all three layers of fund adjustments provide strong support for equity assets," said Zhang Yige, Assistant General Manager of J.P. Morgan Asset Management China.

Yuan Hang, Deputy General Manager of Penghua Fund's Equity Investment Department I and Fund Manager, stated that regarding funding, the country advocates for medium-to-long-term funds entering the market. The shareholding ratios of institutional funds like Huijin and insurance have already increased in the past, and overseas funds' allocation intensity toward A-shares also has room for further improvement. Overall market valuations have risen from the bottom but remain at relatively low levels. Extreme high valuations only exist in local areas and have not evolved into a global phenomenon. From PE, PB, and dividend yield perspectives, many undervalued assets can be found. If positive changes emerge at the corporate earnings level in the future, a "double-hit" market of performance and valuations may occur.