The latest data shows that the total size of public funds has reached a historic high of 27 trillion yuan for the third time this year. On June 29, the Asset Management Association of China (hereinafter referred to as the "China Foundation Association") released Market data of publicly offered funds in May. As of the end of May 2023, there were 143 fund management companies in China, including 47 foreign-invested fund management companies (including Sino foreign joint ventures and wholly foreign-owned companies) and 96 domestic fund management companies; There are 12 securities companies or asset management subsidiaries of securities companies that have obtained qualifications for public fund management, and 1 insurance asset management company. The total net asset value of public funds managed by the above institutions is 27.77 trillion yuan. Specifically, the total net asset value of Closed-end fund is 3.70 trillion yuan, and that of Open-end fund is 24.07 trillion yuan. In Open-end fund, there are five major categories, namely, Stock fund, hybrid funds, Bond fund, monetary funds and QDII funds. In terms of fund size, the size of monetary funds and Bond fund grew rapidly. As of the end of May, the net asset value of monetary funds was 11.89 trillion yuan, an increase of 413.42 billion yuan from the end of April; The scale of bond fund has achieved "four consecutive increases", with the net asset value of RMB 4.63 trillion, an increase of 257.949 billion over the end of April; The size of hybrid funds, Stock fund and QDII funds has decreased. In terms of fund shares, except for hybrid funds, other types of funds have shown varying degrees of growth, with monetary fund shares reaching 11.88 trillion, an increase of 411.269 billion compared to the end of April; The share of Bond fund was 408 trillion, an increase of 222.923 billion over the end of April. For the total size of public funds reaching a historic high, A person related to Debang Fund told Securities Daily: "Judging from the data in May, monetary funds and Bond fund added a total of 671.369 billion yuan. Against the background of the net worth of wealth management products, the decline of deposit interest rates, and the downturn in the real estate market, investors seeking steady returns turned to relatively mature public raised fixed income funds in the industry. In addition, equity Index fund became a counter trend layout tool during the market shock bottoming period, and their shares have also increased significantly in the near future." "In the process of this round of fund scale reaching a new high, monetary funds are the leading force. Compared with the beginning of the year, the size of monetary funds has increased by 1.43 trillion yuan, with a growth rate of 13.7%." Tang Yanran, assistant to the general manager of FOF Investment and Financial engineering Department of Golden Eagle Fund, said in an interview with the reporter of Securities Daily that under the current market environment, the equity market performance is relatively low and the fund has a strong risk aversion, Investors' risk preference has decreased and they are more inclined to choose currency funds with lower risk and better liquidity. The market environment and investor psychological expectations have jointly driven the rapid growth of the size of monetary funds, making them the main force driving the fund's net asset value to reach new highs. Looking ahead to the future, most surveyed institutions are relatively optimistic about the performance and development expectations of public funds in the second half of the year. Tang Yanran stated that although the new issuance of equity funds currently faces some difficulties, based on historical experience, when the new issuance of funds is difficult, there may often be difficulties in the future
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：Securities Daily
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