– Second batch of floating fee funds from E Fund and China Europe Fund close early amid high demand
– Multiple new funds surpass 1 billion yuan in fundraising, including year’s largest at 2.46 billion yuan
– 95% of ordinary stock funds and partial equity hybrids deliver positive returns over three months
– Technology sector funds in semiconductors and robotics join healthcare as top performers
– Fund managers increase stock positions significantly while eyeing ‘big tech + big finance’ strategy
China’s investment landscape is witnessing a remarkable resurgence as active equity funds demonstrate robust performance across the board. Recent data reveals over 90% of these funds have delivered profits during the past quarter, with standout performers achieving returns exceeding 120% year-to-date. This impressive rebound comes amid enthusiastic market reception for new fund offerings, including floating fee structures that have consistently closed ahead of schedule due to overwhelming investor interest. The combination of strong fundraising momentum and outstanding returns signals renewed confidence in actively managed equity products after previous market uncertainties.
Floating Fee Funds Gain Traction with Early Closures
The active equity funds rebound is notably visible in the accelerated fundraising timelines for floating fee products. By August 12, two major funds in the second batch of floating fee offerings had already closed early due to exceptional demand. China Europe Fund announced its Core Intelligence Select Hybrid Fund, originally scheduled to close on August 15, stopped accepting subscriptions on August 12. Similarly, E Fund’s Value Return Hybrid Fund moved its deadline from August 20 to August 13.
This pattern continues with other upcoming funds:
– CCB Fund’s Medical Innovation Equity Fund opened August 4 with closure set for August 22
– Guotai Fund’s Quality Core Hybrid launched August 11 with 3 billion yuan cap
– Southern Fund’s Ruijing Hybrid scheduled for August 25 launch
According to Wind data, the first batch of 26 floating fee funds collectively raised approximately 26 billion yuan, averaging nearly 1 billion yuan per fund with over 260,000 subscribing investors. The active equity funds rebound extends beyond fee-innovative products, with Baijia Fund also advancing the closure date of its Technology Innovation Hybrid from August 22 to August 15. This fund is managed by Baijia Fund Deputy General Manager Chen Heming (陈鹤明).
Large-Scale New Funds Signal Market Confidence
The active equity funds rebound manifests strongly in substantial fundraising achievements, with multiple new funds crossing the 1 billion yuan threshold. Recent launches include:
Major August Launches
– Pengyang Research Select Hybrid: 1.807 billion yuan from 6,826 investors
– Qianhai Kaiyuan HK Connect Value Navigation Hybrid: 1.117 billion yuan from 10,000+ subscribers
July’s Significant Entrants
– SPDB-Axis HK Connect Central Enterprise Dividend Hybrid
– Morgan Wisdom Select Hybrid
– Dacheng Insight Advantage Hybrid
Remarkably, Dacheng Insight Advantage Hybrid raised 2.46 billion yuan from 11,774 investors, making it the largest active equity fund launched this year. This fundraising success directly correlates with the active equity funds rebound in secondary markets, where improved performance has renewed investor interest.
Profitability Sweeps Across Fund Categories
Wind data through August 11 reveals extraordinary performance metrics driving the active equity funds rebound. Ordinary stock funds delivered 12.49% average returns over three months, with 995 of 1,037 funds (95.95%) posting gains. Standout performers include:
– 169 funds exceeding 20% returns
– 12 funds surpassing 50% returns
– Red Earth Innovation Healthcare, Anxin Health A, Fullgoal Pharmaceutical Innovation A
Healthcare-focused funds dominated the leaderboard with several exceeding 40% returns:
– CCB Healthcare Industry A
– E Fund Medical Biology A
– Yongwin Healthcare A
– China Europe Medical Innovation A
– Penghua Medical Technology A
– Ping An Medicine Select A
Year-to-date, products like Huaan Medical Biology A have broken the 100% return barrier. The active equity funds rebound extends equally to partial equity hybrids, which averaged over 10% three-month returns. Among 4,823 such funds, 4,640 (96.2%) generated profits, including:
– 37 funds exceeding 50% returns
– Yongwin Technology Intelligence Select A leading at 80%
– AVIC Opportunity Navigator A, Xinao Performance Driven A, E Fund Vision Growth A
Year-to-date leaders include Great Wall Healthcare Industry Select A, Bank of China HK Connect Healthcare A, and Yongwin Pharmaceutical Innovation Intelligence Select A – all exceeding 100% returns. Great Wall Healthcare Industry Select A leads the pack with over 120% returns.
Technology Sector Emerges as Performance Engine
While healthcare funds grab headlines, the active equity funds rebound receives substantial contributions from technology sectors. Semiconductor, integrated circuit, and robotics-focused funds have delivered equally impressive results, demonstrating diversified strength across the board. Notable performers include:
– Caitong Integrated Circuit Industry A: +40%
– Debond Technology Innovation One-Year Closed A: +40%
– BOC Technology Innovation A: +40%
This broadening performance base indicates the active equity funds rebound isn’t confined to a single sector but reflects improving fundamentals across multiple industries. Fund managers have positioned aggressively for this recovery, with Wind data showing nearly 2,500 funds significantly increasing equity allocations and portfolio concentration since Q2. One dividend-focused fund exemplified this shift, boosting stock holdings from below 20% at end-2023 to over 90% by Q2 2024.
Investment Outlook: Big Tech Meets Big Finance
Fund houses are capitalizing on the active equity funds rebound by outlining forward-looking strategies. Great Wall Fund emphasizes liquidity-supported opportunities in A-shares, advocating a ‘big tech + big finance’ approach. Their analysts note: ‘Event-driven and earnings-driven characteristics will likely dominate near-term markets, with rotation expected among growth-style hotspots.’
AI Revolution Accelerates
Qianhai Kaiyuan Research Select Hybrid’s proposed manager Cui Chenglong (崔宸龙) sees transformative potential in artificial intelligence: ‘From GPT-4 to DeepSeek’s breakthroughs, we’re witnessing quantum leaps in semantic understanding and logical reasoning. This will reshape software, hardware, and service ecosystems within 2-5 years.’
Chinese Innovation Leadership Emerges
Invesco Great Wall’s Equity Investment Director Yang Ruiwen (杨锐文) highlights China’s technological ascendance: ‘From DeepSeek’s innovations to sixth-generation fighter advancements and record-setting pharmaceutical licensing deals, Chinese firms are transitioning from followers to leaders.’ He specifically identifies semiconductor, new energy vehicles, and biopharmaceuticals as core opportunities.
Despite these positive developments, Yang cautions that market psychology lags reality: ‘Pessimism continues suppressing risk appetite, crowding capital into high-dividend stocks and small-caps while pressuring quality tech names. Trade tensions, property risks, and economic recovery concerns remain key constraints.’
Strategic Positioning for Sustained Growth
The current active equity funds rebound presents compelling opportunities for both new and experienced investors. Key takeaways include:
– Diversification beyond healthcare into semiconductor and AI-driven tech funds
– Monitoring new floating fee fund launches for innovative structures
– Analyzing quarterly position changes for allocation clues
Fund managers suggest balanced exposure between growth sectors like technology and stabilizing financials. As market confidence rebuilds gradually, the active equity funds rebound may extend further, particularly if economic indicators continue improving. Investors should consult professional advisors to align selections with individual risk profiles while considering systematic investment plans to navigate potential volatility.
The exceptional performance and accelerating fundraising momentum confirm active equity funds have entered a robust recovery phase. With proper due diligence and strategic positioning, investors can potentially capitalize on this ongoing rebound across multiple high-growth sectors.