Recent data released by the Asset Management Association of China reveals that by the end of December 2025, the total assets under management for China's public offering funds had climbed to 37.71 trillion yuan, marking an increase of approximately 695.748 billion yuan from the previous month and setting a new historical high for the ninth consecutive month. Statistics indicate that throughout the entirety of 2025, public fund assets surged by 4.89 trillion yuan, representing a substantial growth rate of 14.9%. Analyzing the full-year growth structure reveals that all categories of funds achieved positive growth in 2025. Notably, bond fund assets soared by 60%, while equity fund assets experienced a significant increase of 36%. The total scale is now close to 38 trillion yuan. The latest data shows that by the end of December 2025, the total AUM reached 37.71 trillion yuan, growing by about 695.748 billion yuan compared to the end of the preceding month. This milestone represents the ninth consecutive month in which the figure has broken the historical record, having expanded from 33.12 trillion yuan at the end of April 2025 to 37.71 trillion yuan by the end of December. Compared to the 32.83 trillion yuan recorded at the end of 2024, the total scale witnessed a dramatic increase of 4.89 trillion yuan over the course of 2025, translating to a robust growth rate of 14.9%. As of the end of December 2025, there were 165 public fund management institutions operating domestically, comprising 150 fund management companies and 15 asset management institutions that have obtained public offering qualifications. Among the various fund types, money market funds continued to hold the top position with an AUM of 15.03 trillion yuan; bond funds followed closely with 10.94 trillion yuan; equity funds also reached a substantial size of 6.05 trillion yuan. Additionally, the assets of hybrid funds, fund of funds (FOF), and other funds stood at 3.68 trillion yuan, 244.393 billion yuan, and 1.77 trillion yuan, respectively. Data for the single month of December 2025 reveals a clear structural shift: bond funds emerged as the primary driver of growth, with their assets increasing by over 412 billion yuan in the month, effectively reversing the adjustment trend influenced by the "seesaw effect" between stocks and bonds seen in previous months. Equity funds also delivered a strong performance, with their scale growing by more than 250 billion yuan. During the same period, hybrid funds, fund of funds (FOF), and Qualified Domestic Institutional Investor (QDII) funds all registered growth to varying degrees. Although the share units of hybrid funds saw a slight decrease, their net asset value rose from 3.6 trillion yuan to 3.68 trillion yuan, an increase of 4.73%. Furthermore, FOF assets grew by over 8.8 billion yuan in December alone, marking the fourth consecutive quarter of sequential growth. The only exception was money market funds; against a backdrop of declining yields and the relative attractiveness of the equity market improving, their scale experienced a modest decline of approximately 153.6 billion yuan for the month. Taking a longer view over the entirety of 2025, the total AUM of public funds achieved steady growth, albeit with differentiated development across structures. Data from GES Fund shows that in 2025, QDII fund assets grew by 60.56%, bond funds by 59.79%, equity funds by 35.93%, money market funds by 10.47%, and hybrid funds by 4.73%, indicating a strengthening trend towards diversified allocation. It is noteworthy that equity-oriented funds demonstrated a sustained recovery trend. Driven by the rapid development of ETFs, the scale of equity funds has maintained growth since 2023; hybrid funds have also reversed the trend of continuous contraction observed since 2022. Industry insiders widely believe that in terms of the structural growth of funds, the attractiveness of equity assets is rebounding significantly. Analyzing this, Guan Xiaomin, a researcher at GES Fund, stated that against the backdrop of a recovering equity market, equity funds are attracting capital inflows, particularly with the rapid development of index-based tools. Simultaneously, the demand for allocating to overseas assets continues to rise. Zeng Fangfang, from PaiPaiWang Wealth's public fund product operations, identified three new characteristics highlighted by the structure of public funds in 2025: firstly, tool-based and multi-asset funds led the gains, with ETF assets nearing 6 trillion yuan, and bond funds, FOFs, and commodity funds all showing significant growth; secondly, structural differentiation was evident, with equity fund growth outpacing that of pure bond funds; thirdly, industry concentration further increased towards leading institutions. The continuous rise in public fund assets is seen as a reflection of the "deposit relocation" trend. The industry's scale has grown from 9.1 trillion yuan at the end of 2016 to 37.71 trillion yuan at the end of 2025, representing an average annual growth rate of approximately 16%. A research report from Huaxin Securities predicts that incremental capital flowing into A-shares in 2026 could reach around 3 trillion yuan, with potential incremental capital from public funds estimated at about 877.267 billion yuan. Some analysts point out that if public fund assets maintain the median growth rate of 10% to 15% seen in recent years, the total scale could potentially challenge the new milestone of 40 trillion yuan in 2026. Guan Xiaomin anticipates that the scale of public funds will continue its steady growth trend, with types such as equity funds, fixed-income plus funds, QDIIs, commodity funds, and FOFs continuing to attract capital attention. Guan analyzed that in a low-interest-rate environment, fixed-income plus funds offer both stable returns and moderate flexibility, making them a core alternative to bank wealth management products. Meanwhile, investor demand for allocating to overseas assets and commodities like gold will drive the continued development of these fund types. "Investment opportunities in 2026 will still revolve around the technology theme, overseas expansion, and high-quality core assets with high dividends," said Tuo Hejiang, a researcher at GES Fund. Looking ahead, institutions generally believe the wave of transformation in wealth management will continue, with structural opportunities existing in both the stock and bond markets in 2026. Zeng Fangfang stated that public fund scale is expected to grow steadily in 2026, with the trends of indexation and diversification deepening. Tool-based funds will continue to expand, active equity funds are likely to be favored more as fundamentals improve, and products like FOFs and commodity funds, driven by market styles and allocation needs, are expected to continue growing. "A-shares might transition from valuation expansion to earnings expansion; recovery in sectors like technology (e.g., AI, semiconductors) and undervalued sectors like consumption and real estate will provide opportunities for equity funds; amid two-way volatility in the bond market, the cost-effectiveness of hybrid bond funds becomes prominent; high-quality overseas assets also present allocation opportunities for cross-border funds," Zeng analyzed. Zhu Chaoping, Senior Global Market Strategist at J.P. Morgan Asset Management China, pointed out that corporate profit improvements in 2026 are expected to support the equity market, but high valuations coexist with geopolitical uncertainties. Investors should appropriately lower return expectations and diversify risks through diversified allocations. Specifically for allocations, attention can be paid to high-growth core assets within A-shares and sectors related to overseas expansion. Regarding bonds, the coupon advantage of overseas bonds remains significant; against the backdrop of a gradually slowing pace of interest rate cuts, short-duration government bonds in developed markets warrant focus.