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Stock Investment Drives Growth in China’s Mutual Fund Sector

Published: Mar. 7, 2025  7:24 p.m.  GMT+8
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Funds targeting equities became a significant driver of growth in China’s mutual funds last year, as the government called for the sector to play a greater role in supporting the stock market.

Mutual funds’ total assets under management (AUM) reached a record high of 32.8 trillion yuan ($4.6 trillion) at the end of last year, up 18.9% year-on-year, figures from the Asset Management Association of China (AMAC) show. Of that, 29 trillion yuan was being managed by open-ended funds.

China’s Mutual Funds Pick Up Pace

Of the open-ended funds, equity-focused funds saw the largest yearly increase in AUM, rising by nearly 60% to around 4.5 trillion yuan at the end of last year. That brought their share of the total AUM of open-ended funds to 15%, compared to just shy of 12% at the end of 2023, Caixin’s analysis based on AMAC data shows.

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  • China's mutual funds reached a record AUM of 32.8 trillion yuan in 2024, with equity-focused funds rising nearly 60% to 4.5 trillion yuan.
  • Equity ETFs had net inflows of over 1 trillion yuan, contributing to a 17.4% increase in A-share market value held by mutual funds.
  • QDII mutual funds saw a 47% boost in AUM, driven by domestic interest in global assets, with industry anticipation for more equity investments, especially in tech-related sectors.
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Who’s Who
DeepSeek
The article mentions "DeepSeek" as a recent technological breakthrough in China's artificial intelligence sector. It is expected to drive greater mutual fund investment in equities, as tech-themed ETFs targeting AI, cloud computing, and semiconductors are launched.
E Fund Management Co. Ltd.
E Fund Management Co. Ltd. is one of China’s largest mutual fund firms. It has launched technology-themed ETFs targeting areas such as artificial intelligence, cloud computing, and semiconductors, capitalizing on the country's recent advancements in the AI sector, like the rise of DeepSeek.
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What Happened When
End of 2023:
Equity-focused funds' share of the total AUM of open-ended funds was just shy of 12%.
Start of 2024:
The market value of tradable A-shares held by mutual funds was 5.1 trillion yuan.
End of 2024:
Mutual funds' total AUM in China reached 32.8 trillion yuan.
End of 2024:
Equity-focused funds' AUM rose by nearly 60% to around 4.5 trillion yuan.
End of 2024:
Equity ETFs' net inflows exceeded 1 trillion yuan.
End of 2024:
Overseas investment by China's mutual funds through QDII totaled about 611 billion yuan, a yearly increase of nearly 47%.
Present:
The market value of tradable A-shares held by mutual funds increased to 6 trillion yuan.
January 2025:
A plan was issued by the China Securities Regulatory Commission and other state departments to ensure at least 10% annual growth in mutual funds' holdings of tradable A-shares over the next three years.
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